1hr BTCE - fail at top of range led to collapse

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Sadly for those in the Bitcoin world, today was a very negative day for the cyrpto-currency. Viewers of our show last night should have left feeling the bearish tone to the current environment and indeed, that bearishness has played itself out. Technically, a rather ugly fail at the top of a well defined trend channel and a looming weekly OTE zone were two reasons alone to look lower. Consider too, the pending fundamental selling deadlines for those within China, and I suppose you could make the 'rational' case for a bearish scenario. Interestingly, those downside technical objectives have now been hit and one has to be left with a feeling of, 'is it over for now?' While our over-bought / over-sold indicator is very much 'stupid' at the moment (and really that seems to best describe price action) neither raw momentum (MACD Historgram) nor volume (OBV) have bottomed in earnest. The current 'dead-cat-bounce' has brought us back to the 13ema and the bottom of the trend channel. These two barriers may put a lid on prices for the time being. Should we test these recent lows and they hold, a move back above these recent highs might represent a 'double bottom' and if so, I shall pay close attention to what the indicators are suggesting at that point. Should a bottom come in (and we recapture the trend channel) the current OTE short sweet spot (where institutions will seriously consider shorting again) is right at a significant 'battle line' noted on the chart above.

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