2018-9-6 16:56 |
Bitcoin price action falls off a cliff over the last few hours as it fails to get above resistance around $7400 to $7500. Price action has been looking bullish for the past few days as it continued to edge upwards forming higher highs and higher lows.
The highest point reached was around $7425 and after trading for a number of hours around this point, Bitcoin underwent a sharp drop losing 5% of its value. This drop gives further legitimacy to the descending triangle pattern which price action has been trading within since January. If the descending triangle executes as would be expected, this would indicate a drop back down to sub-$6k levels.
Bitcoin Daily Chart – Source: Tradingview.comThe hourly provides a closer look at the drop. After trading in a range near the weekly high, price underwent its ~5% decrease in the space of two hours. With the price now trading below $7k, the next important support level is going to be around $6850. $6750 to $6850 is an important liquidity point with a lot of trading taking place in this range in the past.
To the upside, around $7150 has been an important point in the past, but with the price drop blasting through it, it may no longer act as an important resistance/support level. Price is currently trading sideways. The longer price trades sideways without recovery; the more likely a bear flag is to form and execute. Outlook is currently bearish unless a recovery to around $7150 can occur.
Bitcoin Hourly Chart – Source: Tradingview.com Key Takeaways: A sharp 5% drop occurred for Bitcoin’s price over the space of two hours. Important support level at $6850. Descending triangle pattern still in play which would indicate a drop back below $6k. 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.Breaking: Bitcoin [BTC] Returns Below $7k With 5% Drop was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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