Unfortunately, the price of Bitcoin is down nearly 8% over the course of the past 24 hours, reaching a current price of around $6461. Twenty four hour volume has increased significantly, in comparison to totals from the past few weeks, to roughly 6.2 billion USD. We believe the drastic sell-off is the reasoning behind the increased volume.
In our opinion, major players in the space allowed for $BTC to slowly creep towards the 2018 diagonal downtrend resistance at $7400-7500, before launching themselves into massive short positions (see BTCUSD shorts chart on September 1st through today). Obviously those positions have been extremely profitable over the course of the past 36 hours.
At this point, we do not see an end to the bloodshed coming yet. We believe that 2018 lows at $5740 will be swept in the coming days, and that, ultimately, a target of $4800-5200 will be met before another bull market ensues. With this being our current market sentiment, our team has entered net short positions to profit off of the potential continued downturn.
The volatility, as difficult as it may be to stomach, is why we are all here. We had an incredible August in regards to trading and expect that to continue on through the remainder of this bear market. We will update you if we see any changes to our analysis in the coming days.