Good afternoon traders! By the looks of it, Bitcoin is currently sitting in a parallel channel . We saw an amazing drop yesterday, likely caused by hitting the 200 MA for the first time since our $10,500 drop . The price actually dropped at exactly 6:00 AM EST, in 5 minutes. Causing record volatility on most exchanges. We can raise ourselves a red flag after a price movement like this, likely caused by a few or one market maker(s). Moving on from this, Bitcoin's technicalities are still bullish! Bitcoin managed to hold its channel on its last drop , and as long as it does, will be likely to retest the $9,100 resistance level . For now though, all we can do is wait until further price action is developed, because taking a trade here is very risky, especially with high leverage. It is also worth mentioning that there is a Bitcoin Futures gap at $8,950. Because Bitcoin usually fills its futures gaps, we can expect the price to come back up to this level, but it is not always guaranteed. If Bitcoin does break its channel to the downside, we can hope that the first support level - as labeled on the chart - will hold. If it does not seek to hold the price, we will most likely see a drop to the second major support level , where a great buying price will be found. But with the halving coming up and Bitcoin recently breaking out of its long-term channel, I do not expect it to drop too much, because historically Bitcoin has always increased in price, into the halving.
That will be all for this Bitcoin analysis!
As always friends, I wish you good luck trading!
And thank you for supporting me.
-Trader Demo
That will be all for this Bitcoin analysis!
As always friends, I wish you good luck trading!
And thank you for supporting me.
-Trader Demo