Bitcoin has been showing inconsistent performance recently dumping and pumping very quickly. We believe that if BTC starts closing below $6,900 we can see it testing the $5,800 zone. At the moment pressure is still down and we suggest taking more risk on shorts as opposed to longs. However, we would like to take a long scalp in $6,830 – $6,730 zone. Additionally we would like to scalp short in the $7,500 and $8,300$ range. These scalp might turn into swings if we start closing above/below important levels.
Erik goes on to explain that he expects a move all the way back to the $7,600 area. He believe this plays into the pricing that bitcoin is currently showing. He further reiterates the truncated head and shoulders patter bitcoin displayed last week and believes this failed pattern could actually be positive for bitcoin. Ultimately Erik concludes with stating that he thinks there may be a big explosion upwards due to Wales covering their short positions. It is unknown how much further they can push bitcoin down.