7.11 Bitcoin shock crisis! Will the crash come at any time?
If the short-term bottom structure of Bitcoin is regarded as a double bottom pattern, the price had already broken through the key neckline position of the double bottom yesterday. We can observe from the subsequent market that it broke through the neckline but fell back below the neckline. However, the current price has not started a downward trend, but is hovering near the neckline.
Yesterday, we mentioned a point of view based on the news, that is, tomorrow Friday, there will be $1.8 billion in Bitcoin and Ethereum options due for delivery. Among them, it is worth noting that the biggest pain point of Bitcoin is $58,000. Our point of view is that the dealer should keep the price of Bitcoin around $58,000 in the next two days to maximize their profits.
If the price is maintained at around $58,000 in the next two days, there will be a technical pattern of Bitcoin that falls through and then retests and continues to fall. The dealer controls the price at this point, which means that the price will fluctuate near this point. For the rebound pattern of Bitcoin, it is that it cannot rebound after falling, and then it will start a downward trend.
It is very simple to break this view. Bitcoin will directly break through in the current situation and return to the inside of the box, which is about 60,000. So I think it is very important for Bitcoin to break through.
If it still fails to break through in the next two days, combined with the upcoming weekend, there will be no market on the weekend, then it will continue to fluctuate for a long time at this place, and then it is likely to start a downward trend again.
So I think it is better to wait for the price to return to above 60,000 if you want to go long. If you have already gone long before, then in the rest of the week, you need to observe whether Bitcoin can break through and return to above 60,000. Otherwise, I think you should consider reducing your position or even leaving the market.
