hossein-amiri

Bitcoin Further Correction

BINANCE:BTCUSDT   Bitcoin / TetherUS
Hello Fellow Traders

Before we get to the TA I'd like to put some points in perspective in regards to market psychology:

BINANCE:BTCUSDT has continued its way down for the last few days and its market cap went from 110 Billion to around 78 Billion, Whether it's because of SEC moving on some Exchanges/ICOs or the hash war that has been going on or even whales manipulations.
As a result there's still lots of panic selling going on and we can imagine investor's view of the market is pretty negative right now. Although there's always a chance for a reversal and the price will of course rise again at some point ( probably in the next 3 or 6 month) , But at this moment, the bulls show no sign of strength in terms of volume/momentum.

So keeps those in mind as it might help to determine in which direction price is more likely to move.

Let's get to the TA:

Looking at 1 Hour Chart BINANCE:BTCUSDT has been consolidating around $4500 for the past few hours and its range's been tightening up, Forming a symmetric triangle, Price action is also catching up with the 50 Hours Moving Average (Depicted as the yellow line) The last time we saw this formation (15 Nov / 19 Nov) Price broke below and went for a deeper correction. Now giving wight to the latest market movements, it's more likely that price breaks below once again.

Here's a quick reminder of how price behaved around these levels back in August 2017 / Oct 2017

So if we're to move further down, we're likely to find support at $4000/ $4200 and if the price couldn't hold on to these levels we'll move further down to test $3500 support zone .

In the case of reversal, resistance is to be encountered at $4700 – $4750 and later on at around $5000/ $5300 Based on latest price actions.

So set your stop losses according to your risk tolerance if you're not planing to hodl.

*Please be informed that this is not a financial advise*
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