BTC direction will be estimated after breakout

2018年10月18日

Morning, guys

It is difficult to comment spaghetti chart of BTC that we have right now, but we'll try. Speaking on larger perspective, since the reason for rally was not fundamentals or economy value of BTC but force-major technical situation, we suggest that chances on drop are better than on upside reversal. Here again an issue of absence of regulation appears and investors again will think about risks of BTC as financial asset.

Technically, final direction, whatever it will be, will be estimated on a breakout of huge rectangle that we have, range of the Monday's rally. target will be the height of this range (~600$) counted in direction of breakout.

Meantime, while BTC is coiling inside, all that we could do is try to get some small patterns. One of them is "222" Sell that could appear around 3/8 Fib resistance level of ~6520. This will be chance to make scalp shorts.

In general we suspect that sequence of such events as Mt. Gox crush, now is Bitfinex and Tether issue and no regulation of BTC market will significantly reduce attractiveness of cryptos for potential investors. Besides, BTC gives no % return on investments, this is also valuable issue on an upside rate cycle in US.