Bitcoin (BTC) Begins The Week In Red But There Isn’t Much Room For Further Downside

Bitcoin (BTC) is an uptrend as the price seems to have entered a new ascending channel that can be seen on the 4H chart for BTC/USD above. This channel has held so far since the last few weeks of August and can be seen as the gateway to a trend reversal. However, the price seems to have lost the bullish momentum that kicked in soon as Bitcoin (BTC) closed last month above 21 EMA on the monthly time frame. That does not mean though that the bears are in charge but the price is likely to retrace for now. There is not much room for retracement and the most Bitcoin (BTC) could do what be to drop to the lower end of the pitchfork it is trading in.

The volume price confirmation indicator on the 4H chart shows that the price is ready to take off even from current levels once the bottom of the third segment of the pitchfork is tested. However, the MACD shows a different picture. The price seems to have topped out for now according to MACD analysis. There could be another wave down but the price is still expected to remain above $7,000 unless the pitchfork is broken. The chances of the pitchfork being broken are low as the market has had a positive reaction to ETF rejections and there is not much FUD at this point that could drive the prices down.

The above daily chart for BTC/USD shows that Bitcoin (BTC) seems to have lost its bullish charm before even running into the downtrend resistance. This seems to be a negative development in itself but it could also be a sign that Bitcoin (BTC) may consolidate around these levels which will make it easy to break the downtrend resistance at this point. There are chances of further downside but the odds of Bitcoin (BTC) moving higher from current levels are a lot higher.

Mt. Gox has recently started accepting applications again from claimants who lost their Bitcoin (BTC) in the Mt. Gox hack. There is some speculation surrounding how Mt. Gox may be able to dump some of its Bitcoin (BTC) after the 18th of September. In all fairness, this seems to be nothing more than FUD and just an overreaction at a time of negative sentiment. Some investors still blame Mt. Gox for the recent correction but that does not seem to be the cause of it.

Mt. Gox or any other exchange its size does not just up and dump its Bitcoin (BTC) on an exchange like Bitfinex or Binance. This is not how it works. If they were to do it that way, there will be a series of new lawsuits against them for gross negligence, incompetence, market manipulation, malicious intent, you name it. This is why they just simply buy or sell their Bitcoin (BTC) on OTC (over the counter) markets which does not affect the price at all. So, if anything, recent developments with Mt. Gox should be seen as a sign of restoration of confidence in the market as people are getting their money back, most of whom will invest it again in Bitcoin (BTC) or other cryptocurrencies.

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