Chart of the day: Bitcoin has recovered, but don't buy the dip yet

After collapsing more than 15% in the last three days, he has now recovered. So is the sale over? We don't believe that for various reasons.

The cryptocurrency joined other risk systems such as stocks in a sharp sale when China's huge real estate group Evergrande (HK :) seemed to be about the failure. At the same time, a classic safe harbor increased by 1.5 %. In our view, this dampens the claim of many that Bitcoin could be a replacement for the yellow metal in phases of riskopause.

Out of risk perspective, investors could now, since China's PBOC began to pump liquidity into the country's financial system to avoid market turbulence after a holiday, be encouraged that the local supervisory authorities would not allow Evergrande to become another Lehman Brothers. This is not a matter of course, because China has recently been desperately trying to counter excessive speculation in various markets, and the Evergranden debacle blocks his way.

It remains uncertain whether Beijing ultimately lets the company - its second largest real estate developer after sales - ultimately collapse in order to send a clear message to other heavily indebted local companies. An additional buoyancy for the market mood today and the risk systems as a whole, Evergrande's private negotiations with the bonds were paid out to pay the September Kupon, whereby a loss of payment was held at the market level.

on Wednesday at the time of writing, Bitcoin rose by 3.8% and also rose with regional stocks and US futures. The cryptocurrency was supported by the key level of

Why don't we recommend investors buying this decline? The technical picture says more than a thousand words.

At this point, the increase in digital token is regarded as nothing more than a return movement to test a closed H&S top again, probably driven by short covering.

If the price continues to fall below $ 28,890, a long -term downward trend has also been established.

trade strategies-establishment of short positions

Conservative dealers should wait until the price tests the integrity of the section again, followed by sales that would press the final base under $ 40,000 before they go short.

moderate traders would also wait for a short, at least with resistance from the H&S top based on the final basis. At the moment the price we see is only on an intraday basis.

aggressive dealer could now be shorts, provided that they accept the higher risk in relation to the higher reward that goes hand in hand with a movement in front of the rest of the market.

trade pattern

• Admission: $ 42,400
• Stopless: $ 43,400
• Risk: $ 1,000
• Goal: $ 37,400
• reward: $ 5,000
• Risk: reward ratio: 1: 5