Bitcoin 28 Day Old Trend-Line Broken These Zones Are Important!
Updated
Hello, Traders Investors And Community, Today I made an important observation in terms of the locally time-frame 4-hour bitcoin-chart, we just broke out of a highly respected 28 days old trend-line. This trend-line served bitcoin all the way from 3900 to 7450 and now it is broken to the downside!
When looking at my chart we can see that bitcoin bounced several times at this trend-line, in fact, this was 5 times before on the trend-line before bitcoin broke finally to the downside the sixth time. You can see these bounces marked in purple and the breakdown to the downside marked in red, now the problem is that bitcoin can still fall more which wouldn't be good at all for further performance.
For now, we see the first local support zone between 6600 and 6750, in this zone, it is possible that we see a bullish-bitcoin-bounce but this is in fact not 100 % sure at the moment, also we can see the bounce coming and then quickly falling back to the level where it was before. When we fall below 6600 that is critical for bitcoin because below there is a huge free-fall zone where many sellers and bitcoin bears will sell. When this scenario happens we can expect the first next support between 5900 and 6000 this will be a major zone that should be confirmed as support, from that level we can see a bounce to the upside.
Okay what is also important is the major black trend-line currently above bitcoins price you can see it in my chart, this is a huge resistance right now and if bitcoin bounces at the mentioned support level we can expect the resistance firstly at the black trend-line, therefore I would be cautious with opening along to trade the reversal firstly it will be wise to wait for a confirmation which confirms a possible reversal. So this should be a good outlook of the current situation, have a good day and good trading profits, my friends!
Thanks for watching my analysis, feel free to support my friends and don't forget as I always say:
The ambition to transform opportunities into gold remains the most significant tool for a trader.
In this manner FAREWELL
Information provided is for educational purposes only and should not be used to take action in the markets
When looking at my chart we can see that bitcoin bounced several times at this trend-line, in fact, this was 5 times before on the trend-line before bitcoin broke finally to the downside the sixth time. You can see these bounces marked in purple and the breakdown to the downside marked in red, now the problem is that bitcoin can still fall more which wouldn't be good at all for further performance.
For now, we see the first local support zone between 6600 and 6750, in this zone, it is possible that we see a bullish-bitcoin-bounce but this is in fact not 100 % sure at the moment, also we can see the bounce coming and then quickly falling back to the level where it was before. When we fall below 6600 that is critical for bitcoin because below there is a huge free-fall zone where many sellers and bitcoin bears will sell. When this scenario happens we can expect the first next support between 5900 and 6000 this will be a major zone that should be confirmed as support, from that level we can see a bounce to the upside.
Okay what is also important is the major black trend-line currently above bitcoins price you can see it in my chart, this is a huge resistance right now and if bitcoin bounces at the mentioned support level we can expect the resistance firstly at the black trend-line, therefore I would be cautious with opening along to trade the reversal firstly it will be wise to wait for a confirmation which confirms a possible reversal. So this should be a good outlook of the current situation, have a good day and good trading profits, my friends!
Thanks for watching my analysis, feel free to support my friends and don't forget as I always say:
The ambition to transform opportunities into gold remains the most significant tool for a trader.
In this manner FAREWELL
Information provided is for educational purposes only and should not be used to take action in the markets
Note
ANALYSIS UPDATE: BITCOIN bounced within the most significant support level to emerge with a substantial demand increase pushing the bears out of the market and marking a new bull paradigm.
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