2018-11-26 17:14 |
Bitcoin continued its bearish movements over the weekend pricing in a low of around $3500 on Sunday. This point marks a new 2018 low for Bitcoin and also a return to $3000 territory. The last time Bitcoin traded between $3000 to $4000 was September 2017.
On Friday, the daily candle for Bitcoin formed a Doji as it traded just above $4000. A Doji is a candle where the open is at the same point as the close and shows indecision from traders. Traders were likely assessing whether they were willing to accept valuations below $4000 with the weekend then resulting in a hard drop.
Massive depreciation was also seen in altcoins. The entire cryptocurrency market cap is now trading around $127 Billion after trading above $200 Billion just two weeks ago.
Price has somewhat bounced for Bitcoin since the weekends hard drop. It currently trades around $3900. Some resistance may be coming into play around $4000 as price briefly raised above but dropped back below.
Momentum is still strongly on the side of sellers with the MACD continuing to diverge to the downside. However, we are seeing a bullish divergence between price action and RSI with price forming lower lows and RSI forming higher lows. This is typically a trend reversal pattern, but it would be risky to take a long position at this point given the strong seller momentum.
Bitcoin Daily Chart – Source: Tradingview.comThe weekly RSI trades at historic lows indicative of the strong seller momentum. The next key support level is $3000. This is both an important psychological point for traders and an area of significant trading activity in the past.
Bitcoin Weekly Chart – Source: Tradingview.com Key Takeaways: Bitcoin drops to a 2018 low of around $3500 and bounces to $3900. Resistance may be coming into play at $4000. Huge losses across the market. Market cap currently valued at $127 Billion after being valued above $200 Billion two weeks ago. Bullish divergence is taking place between price and RSI on the daily chart. This is typically a trend reversal pattern but highly questionable amid current selling pressure. 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.Volatile Weekend for Bitcoin [BTC] Price – New 2018 Lows was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
Similar to Notcoin - Blum - Airdrops In 2024
Bitcoin (BTC) на Currencies.ru
|
