Bitcoin breaking important support level could lead to a selloff
Updated
Hello traders, as you can see from the chart, the 21 day EMA support failed to hold this time, resulting in a 500$ drop already. After the retest of the support, it became a resistance and we have bounced off it.
This is a bad signal as it indicates further movement down, especially if the 7500$ support fails to hold. Weekly RSI still in the overbought territory and the weekly candles paint a picture of a reversal.
I believe we could see panic enter the market if the price keeps dipping and a test of the 21 weekly EMA currently standing around 6000$ would become a possibility.
Alts have suffered from this fall already, most of them falling through the 21 day EMA. An exception is Litecoin, which we have talked about in our latest analysis and is looking a bit stronger than the rest of the market (for now).
We would have to see a rally on Bitcoin with a close of above 8050$ for the bullish scenario to become more likely again.
It will be interesting to see what happens in the next days as the volume increases. Since we have been trading inside a range for quite some time, the next move could be very big and scare many people out of the market or just liquidate them.
Be careful out there :)
If you wish to read my latest blog where I discuss what may come next, please visit our "Cryptolife store" website.
This is a bad signal as it indicates further movement down, especially if the 7500$ support fails to hold. Weekly RSI still in the overbought territory and the weekly candles paint a picture of a reversal.
I believe we could see panic enter the market if the price keeps dipping and a test of the 21 weekly EMA currently standing around 6000$ would become a possibility.
Alts have suffered from this fall already, most of them falling through the 21 day EMA. An exception is Litecoin, which we have talked about in our latest analysis and is looking a bit stronger than the rest of the market (for now).
We would have to see a rally on Bitcoin with a close of above 8050$ for the bullish scenario to become more likely again.
It will be interesting to see what happens in the next days as the volume increases. Since we have been trading inside a range for quite some time, the next move could be very big and scare many people out of the market or just liquidate them.
Be careful out there :)
If you wish to read my latest blog where I discuss what may come next, please visit our "Cryptolife store" website.
Note
7500$ has held as support again, it will be very important to break 7800 now (4hr EMA). We need to see volume increase tho, currently the volume is really bad and any time it increases, its a bearish candle. The bulls need to show more aggressive buying otherwise the bounce off 7500 will not last long.
Note
7800$ was broken and as said in the original analysis, it now becomes crucial to break the 8050 level. Volume has increased but not enough yet, bears need to be defeated with conviction for the bullish picture to play out. A big move might be just around the corner.Note
Volume is still very low and on a decline, a BOOM is approaching :)We are in a very neutral territory now, chilling right on top of the 21 day EMA, so we are still waiting for a break of 8100 or 7500$ to get a bigger move.
Daily stoch is very low so I wouldn't be surprised at all if we shot to the upside like my original plan was. Its just these moves need to get confirmed by breaking important resistance/support zones, anything else happening is only noise.
Note
We have now broken and are trading above the 21 day EMA. As long as Bitcoin stays above 8000$, it is looking bullish. It will be important to break 8400$ to continue the rally.Daily volume and volatility are still very low and I will expect a big move to happen soon.
Note
I don't like what I see..Bitcoin doing well, alts performing really bad.Note
Now this is more like it, Bitcoin making a strong rally, consolidating and meanwhile alts started to show strength. Target double top at 8800-9000$, however I expect that level to break and to see new highs above 10k.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.