In our previous analysis, we mentioned the ascending trend-line, which stopped Bitcoin from getting to new lows. Unfortunately for the bulls, Bitcoin had broken that trend-line. Since then, after failing to break through the resistance of the 50 and 100 days moving average lines, along with the descending trend-line, Bitcoin is back down to discover new lows. For the first time in two weeks, BTC meets with the $6250 support level (as the current low).
The reasons, in my opinion, are the low volume that let’s move the market easily, and also the global stock markets. Unless we suffer from a crisis (such as the Subprime), I see a correlation between the Nasdaq’s bleeding red and the crypto markets. People are looking for a safer and less volatile place for their funds during such days.
- The next major support level lies at $6250. This is a key level – for 30 days Bitcoin held above that level. Below – support levels at $200 (weak), $6100 and $6000.
- As mentioned, the trading volume is very low. Markets can go in any direction, but the overall picture looks bearish.
- From the bull side, the major resistance area lies between $6360 to $6400 (strong resistance along with 200 days moving average), before a possible re-test at the $6500 – $6530 area.
- RSI is in its low levels and is now at a critical level of support. There might be a possible correction here before BTC continues down.
- BitFinex has now 19.9K BTC open short positions. This is the lowest level since the beginning of August. I refer it to the low volumes and the decrease in Bitfinex popularity.