[Crypto Alert] Weekly Bitcoin Analysis - Down Again For Second Week In A Row. What Should You Do Now?

Bitcoin had a nice run in the beginning of last week, but when the week ended yesterday, it actually turned down -0.5% during the week. It also formed a hanging man candlestick and that is not a good sign. But lets have a look at the daily chart to begin with.

We can see a whole bunch of negative red candlesticks in the end of the week. Bitcoin closed the week at 2502 (on Bitstamp) and that is a drop of only 14 USD, not much, but it is still a drop. If you look at the two circled areas in the chart, those are potential near term support zones, the upper one at 2400 and the lower one at 2300.

Lets also have a look at the weekly chart:

Here we can clearly see the hanging man candlestick. This usually indicates that the price is about to continue to fall unless you see significant support at the close. However, that is not what we see on the weekly chart.

So, be prepared for a potential down week again for Bitcoin. The good news is that this could be a good buying opportunity if you are in for the long haul. 

Finally, if we look for even lower support prices, we have to go down all the way to the 1700 area, but lets take one week at a time.

Happy trading!