Hi traders, today we're discussing why Bitcoin might be close to a bottom and how to trade the current market.

![flipflops.jpg](https://steemitimages.com/DQmcKG9GPBceReJxFAmWEwNsm7SzHGRSp2vnt5LniV4mS1m/flipflops.jpg)

Here's how...



# Bitcoin.

![4.PNG](https://steemitimages.com/DQmUptVLWqvmkVTDqZMRw7SKAM2b9gYe3V4APZfGu9WkY21/4.PNG)

* Bitcoin broke support at $13k today and came down to retest previous support at $10K on a nice red candle... the bear might not be on just yet though;

* First, because today's dip conveniently coincides with a fud-ish piece of news according to which Chinese authorities plan on widening the ban around crypto-currency trading and possibly mining, neither of which could affect the solidity of the Bitcoin network by the way but is ominous enough to prompt nervous new money to panic-sell;

![DTp3h7RWkAA9-Nz.jpg](https://steemitimages.com/DQmX7vdMLSpod76RJ3hyejnkpQ15SdRKbeZF6L3u6jPpXbp/DTp3h7RWkAA9-Nz.jpg)

* Second, I've noticed that the RSI is now completely oversold on the weekly chart and that we've hit an emotional number ($10k) which could become the new $100 and the pivot point to a fresh momentum;

![5.PNG](https://steemitimages.com/DQmSMvi5sGysRbMtHx7DKVkPAYgpsFbpGcVxZ3sJp8LL3ey/5.PNG)

* Contrary to that, a clear bullish signal would be to see the price successfully break out of this nasty descending resistance (drawn from the top on the first chart) but until we get this kind of confirmation, prudence is advised and hedging is king.

Cheers.