Bitcoin's (BTC) Price will retrace (Short) $4900
Updated
HIGHLIGHTS
Bitcoin's (BTC) price bounced of 200 weekly candle - moving average (MA). Currently, the price is moving in a channel with a resistance level of around $9700.
The colored zone around $5550 and $4900 is playing the role of a strong support level that will stop the price falling if it reaches it.
IN DETAILS…
Fundamentally, the last two days Bitcoin's (BTC) price jumped 40% making short squeeze, liquidating short positions. On 15 Oct 2018 BTC made a short squeeze of the same type, 30 days after that a whole market dropped more than 45% for a short period of time. Before a big drop market is clearing the short sellers with market manipulation. Even the price had this massive growth, the chart couldn't sustain its position above the $10 000 psychological resistance.
Technically, the Bitcoin bounce of 0.618 Fib retracement and of 200 weekly candle - moving average (MA). To break those kinds of solid support, the trend needs to get rejected and test them again. Currently, price testing the $9780 and $9530 weekly candles close. That area is playing the role of a strong resistance for the price. The trend is in a channel and in testing it. The most likely price will fail closing candles above it.
The price should drop around $5550 - $4900
range, that target matches the support of the channel. The most likely scenario is the trend to retrace, finding stronger support, forming new lows around the colored zone.
CONCLUSION
Bitcoin's (BTC) price made a short squeeze and bearish trend is coming, the price will retrace to find a solid support level. The colored zone close to $4900 is a strong support level, where the price could consolidate.
Bitcoin's (BTC) price bounced of 200 weekly candle - moving average (MA). Currently, the price is moving in a channel with a resistance level of around $9700.
The colored zone around $5550 and $4900 is playing the role of a strong support level that will stop the price falling if it reaches it.
IN DETAILS…
Fundamentally, the last two days Bitcoin's (BTC) price jumped 40% making short squeeze, liquidating short positions. On 15 Oct 2018 BTC made a short squeeze of the same type, 30 days after that a whole market dropped more than 45% for a short period of time. Before a big drop market is clearing the short sellers with market manipulation. Even the price had this massive growth, the chart couldn't sustain its position above the $10 000 psychological resistance.
Technically, the Bitcoin bounce of 0.618 Fib retracement and of 200 weekly candle - moving average (MA). To break those kinds of solid support, the trend needs to get rejected and test them again. Currently, price testing the $9780 and $9530 weekly candles close. That area is playing the role of a strong resistance for the price. The trend is in a channel and in testing it. The most likely price will fail closing candles above it.
The price should drop around $5550 - $4900
range, that target matches the support of the channel. The most likely scenario is the trend to retrace, finding stronger support, forming new lows around the colored zone.
CONCLUSION
Bitcoin's (BTC) price made a short squeeze and bearish trend is coming, the price will retrace to find a solid support level. The colored zone close to $4900 is a strong support level, where the price could consolidate.
Comment
Comment
Bitcoin Futures - CME Comment
Comment
Bitcoin's (CME) price is under 21 moving average (MA) on the weekly time frame. That indicates a bearish trend
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