Bitcoin : Know your risk, identify the key levels.
Hello fellas, welcome to the Sunday technical analysis about bitcoin. We've seen a violent drop in today's session with a massive 5% + drop. This is however is very interesting yet scary for bitcoin. Maybe this could be the end of bull market for bitcoin? I don't know for real. But, as an analyst that''s not my job to predict the things, my job is to manage the risk level and the current condition for an asset. So, I'll tell you what the current condition looks like for bitcoin. here we go!
The blue dynamic line is the EMA 55 line for bitcoin which acts as a dynamic support or dynamic resistance for bitcoin. As the dynamic support, this line has held the price pretty well for bitcoin. It has driven the price to the bounce when the price tried to broke this dynamic line for several time. But, with the last 5% drop for bitcoin, the price has already broken down this significant dynamic support which has been a support since the January 26th. But, after the drop of this dynamic support, the price has shown us a sign of rejection in the $9800 region. And if we bring back to the past performance, this $9800 is the minor support of current price.
The second thing that I see on this current structure is that the white support trend line which is the key support as a major price activity is still holding well the price (previous broken resistance that is now become support). How about if this current drop is only just a retest of this previous broken resistance that is now becoming the support and act as the 2nd phase of break out strategy.
So, I am not interested to jump in any position for now and choose to watch how will the price reacts when it touches the gray region as a previous broken resistance that is now become support. Breaking down of this zone means a big short but, bounce of this zone means buy the dip!
The blue dynamic line is the EMA 55 line for bitcoin which acts as a dynamic support or dynamic resistance for bitcoin. As the dynamic support, this line has held the price pretty well for bitcoin. It has driven the price to the bounce when the price tried to broke this dynamic line for several time. But, with the last 5% drop for bitcoin, the price has already broken down this significant dynamic support which has been a support since the January 26th. But, after the drop of this dynamic support, the price has shown us a sign of rejection in the $9800 region. And if we bring back to the past performance, this $9800 is the minor support of current price.
The second thing that I see on this current structure is that the white support trend line which is the key support as a major price activity is still holding well the price (previous broken resistance that is now become support). How about if this current drop is only just a retest of this previous broken resistance that is now becoming the support and act as the 2nd phase of break out strategy.
So, I am not interested to jump in any position for now and choose to watch how will the price reacts when it touches the gray region as a previous broken resistance that is now become support. Breaking down of this zone means a big short but, bounce of this zone means buy the dip!
