The Bitcoin markets rallied a bit during the trading session on Thursday but did not overtake the selloff from the previous session on Wednesday. The $6000 level continues to be very supportive, which is where the buyers have drawn a line in the sand. However, we have continued to make lower lows, which of course is a very bearish sign. We gained over 3% for the day but had sold off roughly 5% the day before. That’s one of the mistakes that a lot of people make, getting excited about a 3% gain after a 5% loss. Ultimately, I think that the market is in serious trouble, and I think it’s probably only a matter of time before we do break down. I would also point out the volume with much higher on the negative day that was the positive one, and that, of course, is something that should be paid attention to as well.

Overall, I think that the market probably extends its losses down to the $5000 level unless of course, we can break down below the downtrend line which is somewhere near the $8000 level right now. So far, we have not been were to break down below that potential downtrend line, so I believe that Bitcoin continues to struggle going forward, and I think that the best route to take in this market is to sell rallies that show signs of exhaustion, especially near large figure such as the $7000 level. It seems to me that no matter how many good reasons there are to buy Bitcoin, the one thing that truly matters is the price. And the price has most certainly been telling you that whispers of an ETF or anything else don’t seem to matter. This market remains bearish overall.

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