Bitcoin pauses before important support $6500, reversal unlikely
Hi, guys, another bad day for cryptocurrencies, market cooling down fast and bitcoin is at critical support zone.
I know there's plenty of analysts out there still charting the bull case, like 'to the moon' or '100k for 2021'. Smashed by bear power, this kind of delusion should be eradicated out of your mind and traders should respect and follow the trend, not trying to catch the falling knife because on a derivative exchange like BitCoke, once you don't trade at the right direction, most likely you'll suffer losses.
For those who still think bull would reverse the trend, they need thoroughly look over the technical part and that is not promising at all.
Bitcoin price pause after hitting 6600. As the price move close to $6500-6500 zone which is also the trough formed at the end of November, many bear naturally closed their profitable positions and engender a bounce. Noticeable is that in bitcoin price history a major reversal never takes place in the form of the double bottom. Therefore, there is an exceedingly high probability that the obvious double bottom support is not holding on for much longer.
On the technical indicator part, in 4h chart RSI value is below 25, demonstrating market weakness. MACD has made a death cross at the area below 0. The market would remain so until some significant price action disrupts the current bearish trend.
I know there's plenty of analysts out there still charting the bull case, like 'to the moon' or '100k for 2021'. Smashed by bear power, this kind of delusion should be eradicated out of your mind and traders should respect and follow the trend, not trying to catch the falling knife because on a derivative exchange like BitCoke, once you don't trade at the right direction, most likely you'll suffer losses.
For those who still think bull would reverse the trend, they need thoroughly look over the technical part and that is not promising at all.
Bitcoin price pause after hitting 6600. As the price move close to $6500-6500 zone which is also the trough formed at the end of November, many bear naturally closed their profitable positions and engender a bounce. Noticeable is that in bitcoin price history a major reversal never takes place in the form of the double bottom. Therefore, there is an exceedingly high probability that the obvious double bottom support is not holding on for much longer.
On the technical indicator part, in 4h chart RSI value is below 25, demonstrating market weakness. MACD has made a death cross at the area below 0. The market would remain so until some significant price action disrupts the current bearish trend.
