BTC has undergone quite a bit of sideways movement over the last day or so. It's had some peaks and troughs, but it has shown very little movement in the grand scheme of things.
This period of consolidation allows for support and resistance lines to strengthen, and it can be considered a potentially foreboding sign. The market will move, and it is likely to move hard and strong.
Which way is it going to move?
Are the bulls or the bears going to lead the storm?
The Bull View
BTCUSD has found a little support just above $8.6k but it's questionable whether the support will be strong enough to encourage a bull charge. If it does then we can reasonably expect BTC price to head back to between $9.6k and $9.8k before we have to have another look.
The Bear View
In my opinion, and because of that giant double top it looks more likely that the lower resistance is going to break. This means that the price will fall below that level, with the 0.62FIB level at $8.1k and the more popular 0.79FIB level being down at $7.1k. There could still be quite a slip to be had.
As ever, if the BTC price does slip that far, we can expect the alt coin market to follow suit. There will be wins to be had, but they will be a lot more challenging to find.
Playing The Waiting Game... Again
As traders, we spend a lot of time watching... and waiting... and this is another of those times. We collect new data and adapt to the new information we have. For now, we need to keep an eye on the price, and determine whether it is going to bounce to the upper resistance or slip down to the lower support levels.
For now, I suspect the bears will win and price will head down to the 7k mark. Meanwhile, Litecoin LTC and Decentraland MANA are looking like profitable plays and I aim to get some TA posted on these in the coming hours.
Well, posting that looks like it was freakishly good timing. Slipped from 8.8 to 8.4 so far.
I'd still exercise caution if looking to buy into BTC at the minute, it could drop from its current 8.2k down to 7.1k before we hit a bounce. Some analysts are predicting deeper dips than that, but this only looks to be a bit of an upward correction.