Bitcoin in No Trade Zone. Support and Resistance levels
Bitcoin is currently sitting in a no trade zone according to my TA. There is plenty of resistance above us and significant support below so we need to wait until market give us a clear midterm direction.
Resistance levels:
8900-9000$ (previous support levels)
Downtrending line rejected the price for 3rd time
Support levels
8300$ (50% Fib Retracement level)
7800$ (61.8% Fib Retracement level)
I am expecting an accelerated drop in case we close below the 8300$ level because it can trigger a panic sell off. Also it is very important for the 7800$ level to hold (61.8% Fib Ret) as it will be very difficult for price to reverse in lower levels. In case we broke below 7800$ I am considering very possible to see new lows in the market.
Resistance levels:
8900-9000$ (previous support levels)
Downtrending line rejected the price for 3rd time
Support levels
8300$ (50% Fib Retracement level)
7800$ (61.8% Fib Retracement level)
I am expecting an accelerated drop in case we close below the 8300$ level because it can trigger a panic sell off. Also it is very important for the 7800$ level to hold (61.8% Fib Ret) as it will be very difficult for price to reverse in lower levels. In case we broke below 7800$ I am considering very possible to see new lows in the market.
Comment:
Support of 8300$ is now broken. There is a high probability of testing the next support level at 7800$. Let's see how market will react.
Comment:
Price is retesting the 8300-8400 resistance. This zone is especially interesting because price seems to respect it either as support or as resistance (I can count at least 10 times where the price reversed into that zone on the H4 chart)
If we manage to broke above it on daily basis and above the daily 50MA then we should consider it as a sign of stregth and bullishness and maybe it's the start of a daily higher low. Until we see that, I remain overall bearish
If we manage to broke above it on daily basis and above the daily 50MA then we should consider it as a sign of stregth and bullishness and maybe it's the start of a daily higher low. Until we see that, I remain overall bearish
Comment:
The price is testing the 7800$ support as we expected after the broke of the 8300$ level. We could see some consolidation here but the most probable outcome is lower prices since the higher level timeframes are bearish.