Some sentiments around Bitcoin recently seem to hold price low. The Thursday’s drop caught traders unaware as a market loss about $550 from this week open at $4200.
Resistance levels: $4300, $5600, $6500
Support levels: $3200, $2800, $2500,
Daily Overview on BTC-USD Market
Currently, on the daily, trading activity and volatility are very low as candles form choppy. This squeeze reveals on the RSI; waiting for the next move. It could be either a pump or dump. But as it appears, the blood has not finished: see MACD about to cross to negative zone. A sign of potential fall. The 2018 low at $3200 support might be tested soon.
An incline move would hit $4200 resistance level, at the trendline. Breaking the $4200 would take price straight to $5600 high, where the 200 days moving average line (purple) slopes.
Monthly Overview of BTC-USD Market
In 2017, Bitcoin had a spectacular momentum: a mind-blowing experience. The currency performance geared investors and traders. But the reverse is the case in 2018 as price unexpectedly fall to $3200 area.
From $19900 ATH in mid-December 2017, Price began to drop slowly. Closing at $10200 in February 2018 with about 95 percent loss; the weekly MACD brilliantly signals the sharp low move, forming dark green columns before the red ones. The red columns are still very dominant. Once it forms light red, a bullish trend is signaled.
But looking at the RSI: the February 2018 sharp low reflected at the overbought zone before driving down to reach the oversold line.