After much anticipation of an explosive move, Bitcoin has finally chosen a direction for the short-term dumping through the asymmetrical triangle support. Current market price rests on $8,100 support but looks poised to drop further.
Bitcoin 1-Hour Price Analysis
On the 1 day chart for XBT/USD, we can see the break-down through the asymmetrical triangle clearly. The breakdown took place at $9,400 and was fuelled by a large red volume candle. Current market price rests on a strong support line, however there doesn’t appear to be enough buying pressure as the most recent daily candle is still very much red in order to see any form of a bounce.
I’m anticipating another dump through $8,200 down to between $7,150 and $7,400 over the coming days. I will then be monitoring how price action behaves at this key support range to determine the likelihood of a bounce play. RSI has turned completely oversold on the daily chart for the first time in the last few months. This means if you’re looking to re-enter into Bitcoin you should be paying close attention over the coming weeks for an entry signal.
It’s crucial to practice proper risk management such as scaling into and out of the market, using sensible stop losses and not overtrading during times when selling volume is in control of Bitcoins short-term price action. We’ve all seen how brutal the affect of bearish pressure can be within a short time frame.
Do you think Bitcoin will drop to $7,200 before potentially bouncing? Please leave your thoughts in the comments below!
This article is strictly for educational purposes and isn’t to be construed as financial advice.
Images via Shutterstock, XBT/USD charts by Tradingview
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