Hello Traders,
If you recall from my last analysis, I mentioned that Bitcoin was running out of fuels since $8600 regions and ready for healthy correction. Interestingly, Bitcoin tested $9000 yesterday, but it was rejected with very high bearish volume down to $8000. ($400 profit/bitcoin was worse than $600 loss/bitcoin)
Interestingly, the timing of $9000 almost coincided China announcing a plan to retaliate Huawei ban with restrictions on rare earth minerals export. As you may know, rare earth minerals are used in many electronics, and restrictions of rare earth mineral imports from China will hurt many American electronics industries. We already see many stock prices are going down today: AMD, APPL, INTC, T, and so forth. Damage in American electronics industry may weakens the price as well if China decides to execute restrictions.
Looking at the 4 hour chart, Bitcoin defended $8000 and currently testing red resistance region. I am positive that Bitcoin wont be able to surpass this resistance zone and get rejected from here. The bear flag is in plya and the first target is $7600 where we see confluent layer of supports.
Happy trading
If you recall from my last analysis, I mentioned that Bitcoin was running out of fuels since $8600 regions and ready for healthy correction. Interestingly, Bitcoin tested $9000 yesterday, but it was rejected with very high bearish volume down to $8000. ($400 profit/bitcoin was worse than $600 loss/bitcoin)
Interestingly, the timing of $9000 almost coincided China announcing a plan to retaliate Huawei ban with restrictions on rare earth minerals export. As you may know, rare earth minerals are used in many electronics, and restrictions of rare earth mineral imports from China will hurt many American electronics industries. We already see many stock prices are going down today: AMD, APPL, INTC, T, and so forth. Damage in American electronics industry may weakens the price as well if China decides to execute restrictions.
Looking at the 4 hour chart, Bitcoin defended $8000 and currently testing red resistance region. I am positive that Bitcoin wont be able to surpass this resistance zone and get rejected from here. The bear flag is in plya and the first target is $7600 where we see confluent layer of supports.
Happy trading
