Is Bitcoin About to Break the Support at $18,500?
With global indices facing deep sell-offs, Bitcoin has found it hard to break the resistance at $20,000. The SPX was trading at its 52-week low on Wednesday, which has sparked fears that even Bitcoin may approach the 52-week low (at $17,600) soon. Should you expect a fall soon?
In the chart above, we can clearly see that Bitcoin has been consolidating between $18,500 and $20,365 for the past few weeks. The longer the consolidation, the more significant the move. Therefore, when a breakout is seen on either side of the zone, expect a strong move.
At the moment, Bitcoin is trading close to the support zone at $18,500, therefore, a bounce could be expected soon.
It must be noted that the coin has formed a bearish candle on the 4-hour time frame - so traders should maintain caution now.
If a reversal is seen, expect the price to approach the supply zone at $20,500. However, if the lower zone at $18,500 is broken, the price will most definitely test the 52-week low.
It is advised not to hold onto any heavy positions as it is too early to predict on which side Bitcoin could break out. However, until the SPX shows signs of a reversal, a bullish breakout seems unlikely.
For more expert analysis, check out our trading analysis section! (link in bio)
In the chart above, we can clearly see that Bitcoin has been consolidating between $18,500 and $20,365 for the past few weeks. The longer the consolidation, the more significant the move. Therefore, when a breakout is seen on either side of the zone, expect a strong move.
At the moment, Bitcoin is trading close to the support zone at $18,500, therefore, a bounce could be expected soon.
It must be noted that the coin has formed a bearish candle on the 4-hour time frame - so traders should maintain caution now.
If a reversal is seen, expect the price to approach the supply zone at $20,500. However, if the lower zone at $18,500 is broken, the price will most definitely test the 52-week low.
It is advised not to hold onto any heavy positions as it is too early to predict on which side Bitcoin could break out. However, until the SPX shows signs of a reversal, a bullish breakout seems unlikely.
For more expert analysis, check out our trading analysis section! (link in bio)