Bitcoin Heading To $7650 Again?
Is Bitcoin Heading Back To $7650 Again?
It certainly seems that way at the moment...
I posted yesterday that Bitcoin was looking strong, but also said I didn't think we were out of the woods yet. Today seems to have confirmed exactly that.
Bitcoin started the day at around the $9300 level after failing to break the resistance at $9480. Things then turned bearish once again and $500 was wiped off the BTC price in one 4 hour candle.
Let's look at a fresh chart:
https://www.tradingview.com/x/qaMkQyES/
4 Hour Chart
Buy Signal
Despite the drop, the MA cross has actually given a buy signal on the 4 hour time frame. I wouldn't be following that myself though, not with the RSI well below the 50 level and the MACD also appearing to be turning bearish here too.
Daily Chart
The picture on the daily chart is still clearly bearish too:
https://www.tradingview.com/x/QWPaVJwc/
Daily Chart
- The RSI is weak, and not yet oversold (which could have provided a positive bounce).
- The MACD is clearly bearish
- The MA cross here still points to a sell
- Volume is low, and
- The downtrend is still clearly intact.
Summary
Guesstimated Target
Judging by the down trend still being in play, and most of the indicators being bearish (or close to it), I am expecting another test of the $7650(ish) level to happen again soon.
Key Levels
Bearish Levels
The first key level is just below where the price is right now, with the $8200 support level currently preventing the price from dropping further.
Below that there is further support at $8000, followed by that $7650 level.
Bullish Levels
There's always the possibility things turn bullish, if they do? The Fibonacci level at $8600 is the first hurdle, followed by the resistance area at about $9000. (Which I forgot to mark).
I'm 80% in favour of further downside as things stand, but we'll see what happens!
Pre-posting update
The $8200-odd level is being tested as I type, it could test $8000 sooner than expected.
Thanks for viewing! Sorry it wasn't more bullish. :-D
For more technical analysis and cryptocurrency related posts, see also: @toofasteddie, @gazur, @ew-and-patterns, @pawsdog, @cryptomagic, @exxodus, @beiker, @lordoftruth, @masterthematrix, @cryptoheads, @tombort, @maarnio, @steemaze & @briggsy
Not investment, financial or trading advice.
Yeah, were heading down. Really hard to say where the bottom is. I'm sure we'll see a bounce back soon, but maybe not enough to handle us going down more.
It looks to have gotten as low as $7850 before bouncing again, happened so fast! I was expecting it to take a while longer than that. Does mean we're back above the $8000 support now, but still need to break $8200 again.
We'll see what happens. (Crosses fingers it doesn't dip again).
Thanks for your comment @marcuswahl!
Thanks for the insights. I really wish your bearish call turns out wrong and we do bounce off of the few bullish levels you've stated. Bitcoin has had a rough month (typical for January), but I believe it has great news right around the corner. If we could just hold out for a little longer! Thanks for sharing!
Me too @apinvests! It did drop to $7850, but we've rebounded already it seems. That could be a good sign! Since it didn't get to $7650 again. (Yet?)
We'll see what happens!
yup., it will be..
It certainly got close not long after I posted, went to $7850 or so. Could end up down there again if it doesn't change.
it goes lower im buyin more...
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