Bitcoin plunges again September 05, 2018

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Bitcoin drops again and could invalidate a further increase on the short term. I’ve told you in the previous days that the crypto market could crash again. Bitcoin drops as expected, I’ve told you in the last report that we may have another drop as the rate increases too slowly.

Price has shown some exhaustion signs in the last days, so the today’s drop it was expected and it is a natural one. The next days could be crucial for the crypto market because if the Bitcoin will continue to drop, then the other cryptocurrencies will drop as well.

Price was expected to drop after the breakout above the downtrend line (upside line), so it remains to see what will happen in the next days because this could be only a false breakdown and it could still increase further.

I’ve told you in the previous report that the rate could come back down to retest also the first warning line (WL1) and not only the broken downtrend line. I want to remind you that a false breakout above the downtrend line followed by a valid breakdown below the WL1 will announce a potential breakdown below the 6000 psychological level.

The failure to approach and reach the 150% Fibonacci line very fast could send the rate much lower in the upcoming period. Personally, I would have liked to see an aggressive false breakdown below the WL1 before the last rebound.

Bitcoin will increase in the upcoming period only if we’ll have a false breakdown below the WL1 or if the rate will fail to reach it. We’ll have a larger drop only if the rate will make a valid breakdown below the 6000 psychological level. Personally, I believe that a breakdown will be imminent if the rate will stay near the 6000 level. We can think at an important upside movement only if the rate will continue to move sideways without touching the critical static support (6000 level).

 

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