Bitcoin Daily Forecast - Wednesday, Dec. 5

BTC/USD

Bitcoin markets fell back below the $4000 level after initially rallying during the day on Tuesday. It looks as if we are still figuring out what to do after the massive sell-off that we have seen. I think at this point, nothing much has changed in the Bitcoin markets, and I think the trade continues to be the same situation: each simply sells short-term rallies. I have a rectangle on the chart that shows where the next resistance barrier is above, roughly the $4500 level. I think that there is a lot of trouble above there, so I think that it’s only a matter of time before the sellers come in once we get to that area.

I am a seller of Bitcoin in the CFD markets because quite frankly I can’t be bothered with the exchanges. It’ll be much easier to short bitcoin in the CFD markets than the futures markets because quite frankly the margin needed in the futures market is ridiculous. At this point, I think that any time we get closer to that $4500 level, you should be looking for short-term charts that show signs of exhaustive candles. I believe that we will eventually break down to the lows again and when I look at the chart I can make a minor argument for a bearish flag. What I find interesting is that it measures for a move down to almost $2000.

I do think that someday value hunters will flock to this market, but right now it’s obvious that the momentum is to the downside. I have no interest in buying Bitcoin until we can break above the 50 day EMA, on a daily close. We are miles away from that happening.

(Click on image to enlarge)

BTC

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