I have realised that BTC is best observed on a daily or weekly chart to get a bigger picture of the overall trend. I have opted to go with weekly chart this time.
I have marked some major support zones/areas where we can see some bounces that would be short-lived. But by looking around, outside crypto and overall bearish sentiment overall in all market types, I see more of a bearish scenario than bullish. From stocks to trade to some business to some nations like Italy, things are taking a bit of a hit. Who knows, people might find safer haven in BTC and invest big.... we don't know.
No matter how badly BTC drops, I don't see it dropping past 2400-2500 range which has a major support. Remember, the lower it drops, the higher it could rebound and reach new heights. All these drops should be just temporary...maybe a few weeks/months. Cryptos have big future in the long run.
Hope you like what I have shared. Take this as something that I see only and is not intended to be taken as a financial advice. I am not a financial adviser but just someone who is learning how to analyse the markets.
Nice analysis Nattain. I also see BTC to be the gold standard of crypto currency. So with 17mil max supply of BTC it is destined to go up and much higher. Probably 25K USD by the end of the year but no one really know how it will really pan and when. Fingers crossed and hope BTC will sky rocket soon.
Italianstud07
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Great insight and chart. Being a noob myself and pardon me if this is a dumb question, what defines something as a major or minor support/resistance? Does it depend on how many times the price depending on the timeframes of course touches or bounces off these areas? Or how many time it gets rejected from going below them? Thanks for any input or feeedback.
nattain
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@Italianstud07, you've got it pretty much. Basically in simple terms, its the price region level where there is a bit of struggle for the prices to move higher (going uptrend) or where the prices bounces when falling (going downtrend). They normally show at what prices the particular commodity (in this case BTC) is being sold off or purchased and shows confidence level of some sort. For eg here, on this weekly chart, you can see the prices have been hovering around 2400-2500 area for weeks, it shows that zone is quite strong.. I hope we don't see that low this time, but that is where the strongest support is. It might just move up even before reaching 2400 zone. Currently we are in 5700-6000 area but might break down as 55 EMA is dipping and volume dropping too. hope this helps.