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Short

Bitcoin correction: to what level will the price fall?

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Parabolic uptrend in which BTCUSD chart has been trading in recent months has been broken. The mood of buyers is clearly not as inspired as it was before. After puncturing $9000 level, the main cryptocurrency impulsively lost almost $1000 at the moment, but then buyers managed to return the price to $8,800. Medium-term trendline breakthrough occurred on Tuesday, June 4th. Then another bearish momentum reversed the trend, Bitcoin lost about $500 and dropped below physiological level of $8000.

The fact that we are looking at the beginning of the corrective movement is confirmed by the following factors:
1. Break the trend line
2. Break of moving averages with periods of 30, 50 and 100
3. Divergence on oscillators and trading volumes ended

The overall situation has ceased to be bullish , the correction has begun and the main question is - at what level will it end? If we recall the experience of previous corrective movements, they usually took place in 3 impulses. That is why there is practically no doubt that there will be at least one more impulse movement down in the short term.

It is very likely that the local target for sellers will be a key level of $7200. At this point that it will become clear how deep the correction will be. If he does not stand, then the next bears target will be the area of $ 6400-6500. Nevertheless, there is reason to believe that $ 7200 will stand. At this mark strong local fall was bought off in mid-May.
Comment: Pay special attention to the psychological level of $8000. If it will be broken, it is quite possible to return to the $8300-8500 zone in the short term.

$8,300 will be the next strong resistance level.
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