2018-12-12 18:14 |
After the extremely bearish drop which has occurred over the past month across the cryptocurrency market, the market leader Bitcoin looks to have found a point of support. Bitcoin has dropped below $3300 on numerous occasions, but the price has risen back above each time.
The bearish movements price was undergoing yesterday met support at this point, and it now trades around $3400. Is it a good thing or a bad thing that price is finding support at this level? It is actually a bit of both. It is a positive sign for price action that it is finding a point where a significant amount of buyers come in. Momentum is starting to slowly shift back towards the buyers at this point with the MACD and RSI beginning to increase.
Bitcoin Daily Chart – Source: TradingView.comHowever, each progressive test of the level makes it weaker by taking away buyers each time and increases the likelihood that price will drop below.
If the price drops below, further support is expected to come into play at $3000 which is both a key psychological point and an area of important trading activity in 2017 as seen by the weekly chart below.
Bitcoin Weekly Chart – Source: TradingView.comThe support level can be seen in further detail on the hourly chart. The first few tests occurred when there was extreme bearish momentum, and price action managed to drop below but recovered after. The more recent tests are holding at the level with buyers likely increasing in confidence.
Bitcoin Hourly Chart – Source: TradingView.com Key Takeaways: Bitcoin has found a key support level which gives rise to both bullish and bearish scenarios. A bullish sign will be if a significant amount of buyers step in on another test of this support. Buyer confidence is starting to increase at this level with the daily MACD and RSI starting to shift upwards. The consecutive tests of the level are more of a bearish sign and decrease the strength of the level by progressively taking away buyers on each test and increasing the likelihood of a drop below. $3000 is the next key level to monitor in the event that price drops below $3300. DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.Bitcoin [BTC] Tests Key Support Level – Bullish or Bearish? was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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