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Midas Touch Bitcoin Technical Analysis 7th March 2018: Crash confirms “crypto winter” theory!Florian Grummes After failing at 11,800 USD for the second time Bitcoin has been quickly losing ground. Over the last couple of hours prices crashed more than 1,000 USD down to 9,400 USD. That´s a drawdown of nearly 20% in just three days. Volatility is obviously back since the market has finished its “slowly creeping up” phase. Technically Bitcoin has been breaking down from a bearish wedge and has already reached the important support zone between 9,280 and 9,400 USD. Here the lower Bollinger Band (9,385 USD) should stop the bears at least for some time/days. Below that support zone the uptrend channel would be the next logical support currently around 8,150 – 8,200 USD. As I have already written in the past so far Bitcoin has not been able to sustainably move above the 38,2%-Fibonacci retracement level (around 11,300 USD). This is a strong sign of weakness which argues for further downside pressure. In such an environment it is extremely important to accept that the current trend is down and the “times of easy money” are over for now. Only with a very disciplined and contrarian approach one is able to make money in a crypto bear market. More than ever it is important to buy only into extreme weakness and sell into signs of strength already! As well hedging your “hodl”-portfolio might be a good strategy. But hedges as well should only be placed into strength and not into a crash. In the short-term due to the oversold 1h and 4h charts it is likely that Bitcoin might recover towards 10,275 USD. But the daily chart still has more need for correction while the weekly chart remains beaten down yet neutral. Overall it seems more and more likely that the correction which started back in mid of December is morphing into a bear market! Such a crypto winter could at least last a couple more months if not one or two years. Be careful! If you like to get regular updates on our gold model, precious metals and cryptocurrencies you can subscribe to our free newsletter here. ### Mar 7, 2018 Florian Grummes (born 1975 in Munich) is studying and trading the Gold market since 2003. Parallel to his trading business he is also a very creative & successful composer, songwriter and music producer. The Midas Touch Gold Analysis & Strategy Newsletter is free of charge and will be published from time to time as it fits the author's busy schedule. Disclaimer & Limitation of Liability: The above represents the opinion and analysis of Mr Florian Grummes, based on data available to him, at the time of writing. Mr. Grummes's opinions are his own and are not a recommendation or an offer to buy or sell securities. Mr. Grummes is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in the Midas Touch. As trading and investing in any financial markets may involve serious risk of loss, Mr. Grummes recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Florian Grummes is not a Registered Securities Advisor. Therefore Mr. Grummes's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction. The passing on and reproduction of this report is only legal with a written permission of the author. This report is free of charge. You can sign up here. © 2010-2018 all rights at Florian Grummes English Translation by Florian Grummes. 321gold Ltd |
