Today cryptocurrency markets experienced a drastic move downwards. Over 11 billion US Dollars were wiped out of the markets in a significantly short period of time. Currently, strong bulls reaction and increase in trading volume is now vital to keep out of $3700 zone.
Bitcoin is falling: the bears seem to increase volume to hold price in their favour. Could this drop be signaling a bearish move?
BTC/USD Long-term Trend: Bearish
Resistance levels: $4300, $5600, $6500
Support levels: $3700, $3200, $2800
Battling with the $4300 price level for over three weeks, today, the massive sell-off from the bear sides are positioning trade in blood. Look at the Stochastic RSI revealing enormous pull as it faces down. The daily RSI also take a low direction.
Breaking the lower ascending triangle with a strong bearish candle signals a decline. This bleeding will be targeted at $3700 support level before the next move. The daily 100 days MA line shows the market strength, waving lower.
BTC/USD Medium-term Trend: Bearish
Since late December 2018, Bitcoin has been moving in an ascending channel pattern. As the 100 days moving average (yellow line) slopes along, price crosses down the yellow line and the lower trend line. This indicates selling dominance. The pressure is reflected on the RSI: it is closing the oversold area. In fact, the Stochastic RSI already lies at the oversold which mean the sellers’ momentum is reaching exhaustion.
However, Bitcoin will continue to bleed if buying volume stay low. The bull reaction is important to push-up price to $4300 resistance level. Otherwise, $3700 support will be touched shortly.