Bitcoin is breaking strong resistance to the upside, but at the same time, it is making a strong 3.5% drop on Friday. What happened? Let's find out! Cryptocurrency prices, including the flagship BTCUSD, are falling today after reports of a hacking attack on the blockchain Binance Coin (BNB), owned by the largest cryptocurrency exchange, Binance Also, the bitcoin rate was affected by news of another format - the value of the asset fell after the release of data on unemployment in the U.S. for September. The coin's market capitalization fell by $7 billion. BTC's daily decline was 3%. The S&P 500 Index lost 2.77% and all of its major sectors were in the red. Despite Bitcoin's significant drop from its highs, weakness in several national currencies has once again sparked genuine interest in the cryptocurrency. British residents were interested in it as insurance against inflation and devaluation. Due to expectations of further devaluation of the pound, the British began to buy gold and cryptocurrencies. When can bitcoin show good growth? CryptoQuant CEO argues that the next parabolic bitcoin run could start when cryptocurrency exchanges start capturing huge flows of usdc. He did not specify when this will happen, but most likely not many people know about it. What can we expect from the market from a technical point of view We might see a break-down of the strong resistance, but the price does not show the proper reaction. Everybody expected a strong momentum, because the price is forming a rather strong and prolonged accumulation before the maneuver. On the local chart, I showed that the price failed to break through the key point 20550, which could activate the orders and start forming a strong upward momentum. Now the price seeks to test the previously broken boundary, but what will it be - a touch, a false break or a return of the price back to the boundaries of the global descending channel? What should we focus on? To buy:
The level of 20550, with the growth of the price, breakdown of this level and fixation of the price in the long zone - above this level, we will have the potential to buy
To sell:
1) We wait till the price breaks through the lower limit of the local range - 18250 and consolidates under it. It is acceptable to open short transactions with small volume (weak signal).
2) Waiting for a breakdown of the global range - support 17650. We are waiting for a consolidation under this support - a signal of average strength
3) After the price returns under the strong trend resistance and prices fixation under this line - formation of a global false-break may provoke a strong fall.