Weekly Weather Report – August 26th 2019

?Weather Report?

After a breakdown from the bear flag Bitcoin tried to break through resistance and It got rejected again turning the $10,500-$400 level into a clear local resistance.  In the short term Trader TJ believes any long positions are invalidated and that we will see more drawback in the short term.  

The only way TJ believe a long BTC call would be a good play is if we test the support at $9,800 without significant sell volume.  If that level were to hold a long position would be in play but with a close below that level it would invalidate it and would lead to a spot shot call.  

Erik on the other hand, hasn’t changed his view much from last week.  He did however point out that the Teather people are still manipulating the prices well beyond where it should have.  He believes bitcoin is out of balance and could make moves down to the $7,000 level or beyond that because bitcoin is the coin of extremes.  Erik also pointed out that the NYAG and Bitfinex is putting a significant strain on the market and all the volume indicates short positions.