2018-7-27 17:19 |
Yesterday, Facebook stock price opened at $176 after closing the previous day at $217, an almost 20% drop. Gaps like these can occur in the stock market due to opening hours being limited to only part of the day. It reminds us that the cryptocurrency market is a different beast that trades 24/7.
Elite cryptocurrency traders are known for being able to catch such moves as Facebook had yesterday by being able to read signals given by the 24/7 market which removes the risk of gaps. By using analysis and reading the order book, the best traders can time large buyers and sellers coming into the market to get on the right side of significant moves.
Bitcoin is having its third consecutive loss today with the price currently trading near the $7850 support level. As anticipated in yesterday’s post here, the price is finding significant support at the $7850 level. This is also the level where 200EMA is currently trading at. As long as price does not drop to near $7500, a higher low will be priced in, an indication of an uptrend.
The drop has progressively lost volume each consecutive day also showing it could be nearing its end. Highs of just a few days ago were near $8500 so we have seen a considerable drop of about 7% since these highs. It’s important to monitor the next move up to see if the price can breach these highs and price in a higher high.
Bitcoin Daily ChartWe can see more clearly on the 4hr chart that the drop is slowing down and currently is trading in a range above support at $7850. We also have further support to this level in the form of the 50EMA on the 4hr which is fast approaching $7850.
Bitcoin 4hr ChartIn the short term, the hourly 100EMA and 50EMA may act as some resistance, with price action already touching off the 100EMA. The 100EMA is likely to converge to the $7850 support level until the price either breaks to the upside or the downside. We can see on the most recent candle that price briefly traded below the support level but was quickly rejected at this level.
Bitcoin 1hr Chart Key Takeaways The cryptocurrency market is 24/7 which enables elite traders to capitalize on 20% moves, unlike stocks which can be subject to large gap movements. As expected, $7850 is currently acting as strong support. Adding to $7850 as support is the daily 200EMA and the 4hr 50EMA. In the short term, the hourly 100EMA may act as resistance 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 Price Drops Back Below $8000 but Outperforms Facebook’s 20% Plunge was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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