Still No Demand For Bitcoin

Let’s start Monday with a quick look at the cryptocurrency market, with bitcoin serving as the most popular representative. We can see that BTC is smoothly falling down, almost like a leaf in autumn. Is there any hope that crypto traders will be popping champagne bottles again anytime soon?

No, not really. Since the end of July, the price has bounced from the long-term downwards trend line (blue), and then tested the ultra-important horizontal support around 5,800 USD (yellow). After this, we got a very technical correction shaped like a flag (red lines). With this flag, we tested the trend line again, and again we ended up with a drop. The lower line of the flag was broken and the price aimed at the yellow area for the 7th time this year. Buyers probably think that it is a great opportunity, but if we check the big picture here, we are in a large descending triangle pattern (upper blue, lower yellow).

In theory, that should result in a massive bearish breakout, and as they often say in the crypto community: “Silence of the Lambos” [Silence of those who bought Lamborghinis, when the price was high]. Do not take that for granted though. A proper sell signal will be triggered when we close the day below the yellow area. As long as we hold (or hodl?) above this level, there is still hope for crypto-maniacs.