Trading Bitcoin: Extreme Fear Throughout the Market

Weekly

Today is Monday and we have recently received our new weekly candle. As you can see on the chart above, sequential has given us a red 2 candle. Traditionally, this is an indication of a bearish continuation, however, the red 2 candle still has to close below the previous red 1 in order to activate a short trade. Additionally, price has closed below the 0.618 fibonacci level which is now acting as resistance.

4 Hour

Bitcoin has recently made a lower-low on the overall trend. On the chart above, you can see we are in the midst of a reaction rally, however price still faces all three moving averages as resistance. After creating a lower low, our current price action is likely to be nothing more than a reaction rally.

Crypto Sentiment

Overall sentiment is extreme fear.

Conclusion

End of year selling for tax write-off purposes may continue selling pressure throughout the next few weeks. Price action overall continues to be bearish. Current resistance stands at $7.2k while our nearest support level remains at $6.7k.

Disclaimer: The author of the article hodls Bitcoin.