After almost a week full of optimism, Bitcoin has taken a nosedive breaking the ascending trend-line and the 200 day moving average (the pink line on the chart) at $6660.This level has been retested and was met with major resistance and then took a plunge even breaking the important 50 day moving average (the purple line on the chart) to the major support level of $6400.
Why did this happen when we were all optimistic? A reason might be the SEC’s unclear statement about the ETF. It was expected to be delayed, but there is still a possibility of the SEC rejecting the ETF before the original deadline on Sep.30.
- As of writing this, the $6400 seems to hold and we might see a little correction to re-test the 50 day moving average from below, this time as resistance. There also lies the 38.2% Fibonacci retracement.
- , If this level does not hold this move might end up in the support level and ascending line around $6300. Next support areas are at $6100 and $6000.
- Again: To declare an end to the long bear market, Bitcoin will need to create a higher low and break past $7300 (the last major high on the weekly chart), now it seems less likely .
- From the bull side, $6520 and $6660 are now support-turned resistance levels. $6800 is still the major resistance area Bitcoin has failed to overcome.
- Looking at the 4-hour chart, the Stochastic RSI indicator is very low, indicating that the market is oversold. This supports the option for a correction back to re-test prior resistance.
- Also, Bitcoin short positions on BitFinex have decreased significantly.
- Trading volume, typical at weekends was relatively low.
Bitcoin Prices: BTC/USD BitFinex 4 Hours chart
Click here to start trading on BitMEX and receive 10% discount on fees for 6 months.
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.