Yes, drop on the Bitcoin is strong but have you seen the American Indices?! Just wow. That is a small panic I would say. The sell off is led by the technological companies, that is why, we will focus on the Nasdaq index today, so the one, which is often referred as a technological one. Before we will dig into the technicals, let me tell You about fundamentals first.
The story will be short. Most experts explain this as a fear of the rising borrowing costs. You see, explanation as good as any, that is why I do not follow the fundamentals. What is the technical analysis telling us? Basically that we are screwed. The price created a double top formation on the 7700 points and went lower. We broke the up trendline (black) and the horizontal support on the 7300 (orange). The momentum is high and there is no bullish defence.
The target now is on the yellow area around the 6300 points. With this setup it is almost certain that we will get there. Almost as we all know Americans and we are aware of the fact that they love V shape reversals without any particular reason. Watch out for that! Anyway, yesterday’s session brought us a proper signal to go short and we should not ignore that.