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A very negative start to the week in global risk with real down gaps in European and US index futures (a real gap being where the open price for the current session gaps lower than the close of last session). Bitcoin and Ethereum have not remained immune and have collapsed in sympathy on long down bars and are trading near the session lows. The average decline since 6 June is now some 25%.
Looking at the Bitcoin daily chart the most important thing to note today, making everything else more or less redundant, is that key support has been aggressively taken out. For reference points in terms of horizontal levels now we have to look at the equivalent price zone during the swift advance stage from December 2020 to January 2021.
In that section of the long advance back then price was flowing smoothly higher with very few clear rest points. Because rest points mark potential ledges for price to settle on and because they are absent, it means there is pretty much a price vacuum now down to US$22,400 first and then US$19,900. The price path is now down in the near term.
