Sunday June 26, 2016 6:00 AM
The next move for BTC is far from decided, however if we fall below $585 today or if we close solid red with increasing volume odds would be strongly in favor of more downside.
A reversal higher today to a green day on increasing volume has the opposite effect and reduces the chances of reaching $375-425 on this move.
While ETH does not have a clear pattern to the downside working as BTC does, today is still important based on its pattern of the last few days. If we close down on increasing volume then expect more downside.
If Bitcoin is going to continue to follow the exact path my recent roadmap predicted when BTC was $575, (a rise to approx 700 now headed for $375-425) then one confirmation of this pattern would be rapidly accelerating volume.
The drop in BTC could be motivated by an increasing movement around Europe for a 2nd referrendum – “Brexit 2.0”. I mentioned this possibility in yesterday’s blog post that the impact of Brexit is too large for it Britian to leave the EU without a fight. Whether we see Brexit 2.0 or not, the result of high volatility for most currencies and markets in the near term (and possibly much longer), including BTC is a very strong probability.
My Positions — still no BTC and 25% core position long ETH.