2018-11-23 17:20 |
The bearish market conditions continue as the market leader Bitcoin returns close to its 2018 low. The bearish movements began last week when Bitcoin dropped from its consolidation around $6250 to approximately $5500.
This week recorded even further bearish movements as Bitcoin dropped through several key support levels including $5000 and $4600. The price currently trades around $4250. A brief recovery took place on Wednesday but met strong resistance at $4600. With a return to bearish movements, Bitcoin formed a low of around $4100 today.
The seller momentum is extremely strong making a drop below $4000 a strong possibility. A drop below $4000 would likely spur another sharp decline, and the next significant support level would be $3000 which was a former point of significant trading activity and also a key psychological point for traders. The daily RSI trades near historic lows and the MACD continues to diverge to the downside, both representative of the strong seller momentum.
The current daily candle is forming a Doji. A Doji is a candle with little or no body and sometimes large wicks. It shows indecision in the market. Although momentum is strongly on the side of the sellers, traders are likely unsure about whether they are willing to accept valuations below $4000. A move below $4000 would be an important point as it is likely to catalyze another sharp sell-off as has happened as Bitcoin has moved below $6000 and $5000.
Bitcoin Daily Chart – Source: Tradingview.com Key Takeaways: Bitcoin trading returns to near its 2018 lows after a brief recovery on Wednesday which met resistance at $4600. Momentum is currently strongly on the side of sellers. The daily RSI trades near historic lows and the MACD continues to diverge to the downside, both representative of this seller momentum. Today’s candle is currently a Doji as traders are unsure about accepting valuations below $4000. A move below $4000 would likely result in another sharp sell-off. 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.Will the Price of Bitcoin [BTC] Drop Below $4000? was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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