Unfortunately for Bitcoin holders, sentiments are about to change for the worse again. The current bounce in prices from a low of 6000 to 9000 appears to be coming to an end.
The 10000 level is very unlikely to be broken. Besides being a psychologically strong resistance level, the 10000 level now has both the 50 day and 200 day moving average on top of it. Together, this forms a virtually impenetrable line of resistance.
The upside from here is at best 10% while the downside is 100%. Adding to this that the down side move is more likely than an upside move, it's again time to sell the bounce.
Going forward we have a neck line of a giant head and shoulder formation appearing at the 6000 dollar level. The head is a massive 14000 dollar from the neck line at 6000 to the top at 20000. The shoulders on either side are about 3000 high, from about 6000 to 9000. If this breaks, there will be very little resistance down to zero.
My advise to anyone holding Bitcoin has been to get out ever since it topped 7000. With the technicals now looking very weak, it appears that time is running out. The likelihood that Bitcoin goes to zero relatively soon is now far outweighing the chance of it ever going above 10000 again.
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