As you know we've been calling for Bitcoin BTCUSD downside over the last two weeks. The trend is still clearly down but we write this to point out that we reached a near term downside target so the short term risk/reward is not as good as it was.
(Click on image to enlarge)
Bitcoin Still In A Downtrend
Being in a downtrend means there is no way to get bullish but when you start to hit some key levels it's not bad to take some profits and leave some too.
There is probably still downside ahead but the risk/reward tells you a bounce at any point is just as likely.
7500 Key Level
The chart above shows that 7500 was a key level for break outs and break downs.
Closing decisively below this level is more bearish.We need to see what Bitcoin wants to do for the next leg. We'd guess lower based on the trend we've been pointing out.
Conclusion
Reading our work you knew our bearishness on Bitcoin was two-fold. One the trend was down. Two that Bitcoin didn't bounce with the Consensus conference which was sign of "bad action."More likely than not there is still downside in Bitcoin. But this fast run to 7500 balances the very near term risk-reward.
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