Hello all, we have seen a very violent drop today of bitcoin. Will this down trend moves continue?
Looking at the chart presented, we have seen a very violent drop for bitcoin . The price has dropped for more than 17% since it reached the interim swing high on February 13th, 2020. I want to give highlight to some levels and factors of bitcoin:
1. Red dynamic line is the 200 Moving average on daily based. we have seen that the price is now trending just slightly above this dynamic support. We have to be aware of this level. if it breaks, we'll see trend continuation to lower support zone
2. Support trend line has already formed since December 2019. We can assume this area as a potential support to catch any bounce.
3. The golden pocket zone however will always be a very crucial level for any asset. And the golden pocket zone is having an alignment with the $8000 region as the area of heavy price action. we could see this area as a potential bounce area.
We have seen 3 crucial supports that we should watch in middle term. But, how is the sentiment and the momentum in the market? I see some factors that will be good to identify current bias
1. MACD : For some reasons, MACD is actually very bearish with the ticking down histogram comparing the previous close and the moving average is curving down to reach the negative area.
2. RSI : it's entering below 40 zone which is potentially the bearish zone and whenever the RSI entered this zone in the past, there was a massive sell off in the market.
3. Price action : Since the price reached the interim swing high since February 13th , there were some bearish type of candles has formed. And with the last 3 days candle with a huge red, is showing us the the massive sell off is occuring now.
Looking at the above analysis, I feel like there could be a push toward the downside is likely for bitcoin. 3 areas of supports that I've mentioned above could be a nice place for bounce but, we must always assume it as a relief rally only. I see that in the long term, there is still far from the bottom, maybe there might be a possibility for making lower low in higher degree. For now, just be focus on the 3 areas mentioned above to catch a little potential bounce.
Looking at the chart presented, we have seen a very violent drop for bitcoin . The price has dropped for more than 17% since it reached the interim swing high on February 13th, 2020. I want to give highlight to some levels and factors of bitcoin:
1. Red dynamic line is the 200 Moving average on daily based. we have seen that the price is now trending just slightly above this dynamic support. We have to be aware of this level. if it breaks, we'll see trend continuation to lower support zone
2. Support trend line has already formed since December 2019. We can assume this area as a potential support to catch any bounce.
3. The golden pocket zone however will always be a very crucial level for any asset. And the golden pocket zone is having an alignment with the $8000 region as the area of heavy price action. we could see this area as a potential bounce area.
We have seen 3 crucial supports that we should watch in middle term. But, how is the sentiment and the momentum in the market? I see some factors that will be good to identify current bias
1. MACD : For some reasons, MACD is actually very bearish with the ticking down histogram comparing the previous close and the moving average is curving down to reach the negative area.
2. RSI : it's entering below 40 zone which is potentially the bearish zone and whenever the RSI entered this zone in the past, there was a massive sell off in the market.
3. Price action : Since the price reached the interim swing high since February 13th , there were some bearish type of candles has formed. And with the last 3 days candle with a huge red, is showing us the the massive sell off is occuring now.
Looking at the above analysis, I feel like there could be a push toward the downside is likely for bitcoin. 3 areas of supports that I've mentioned above could be a nice place for bounce but, we must always assume it as a relief rally only. I see that in the long term, there is still far from the bottom, maybe there might be a possibility for making lower low in higher degree. For now, just be focus on the 3 areas mentioned above to catch a little potential bounce.
Bitcoin : February 28th, 2020
On the daily view, the bears consistently try to push the price lower to below the red dynamic line which is the 200 MA. This 200 MA is the first anticipated region of my yesterday's analysis. If this breaks, we'll see the 2nd support to be touched.
Daily candle is going to close in the next 1 hour since I make this post. So, this will become a decision point for bitcoin.