Bitcoin's Short Term Bearish Scenario to be rescued by 5% surge
Bitcoin dropped to $8,992, which was anticipated from more than a week ago, although it dug a couple of dollars into the mentioned target. As seen in DataMish, BitMEX saw liquidations of shorts worth $50.15 million USD, whereas Bitfinex saw 799 BTCs get liquidated in the last 24 hours.
At press time, Bitcoin has briefly breached below the support level at $9060. Assuming that it will not close below it, there is a possibility of a small surge of 5.30% or less.
- The dip into the price, although temporary, might cause the price to bounce back and hit $9,545.
- This surge will ultimately lead back down to $9,060 since the resistance will not be breached.
- The second time testing of the $9,060 will be crucial and BTC’s journey depends on it.
60 Minute Bitcoin ChartSource: Trading View.
Now that BTC has breached both, the up channel and descending triangle, the price will move sideways. However, as mentioned above, the sideways movement will be accompanied by a small surge and a dip.
This is movement is due to the overwhelming downward pressure after yesterday’s dip. Hence the reason for its brief surge and dip.
The key level at the time of writing and for the week to come will be the $9,060. Depending on how the price reacts to this level or respects it, the next set of movements for BTC can be traced out.
The most reliable and used indicator, RSI shows an already boiling buying pressure, waiting to escape, surge higher. Further, corroborating the above-mentioned theory.
However, there might be another oversold contact, causing the price’s trajectory angle to reduce. So, the next logical target would be the $9,545, following which would be another retouch of the $9,060 and hopefully close below it.
Any price movement below $9,060 would be disastrous for BTC. This would mean going back below the beloved $9,000 level, yet again for the ‘millionth time’. Preparing for the worst, the next downtrend, if it does happen, would be to $8,765. Everything will be much clearer after the last weekly candle of the month closes. Only then can one decide, if the price will head lower or higher.
About The Author
Nick LeesonNick Leeson is an avid trader and cryptocurrency enthusiast. Introduced to cryptocurrencies in early 2016 by a misclick on a YouTube video, Leeson has grown increasingly fascinated by them. He owns cryptocurrencies to trade and complete his goals of growing his accounts from scratch. Leeson's favourite cryptocurrencies include a lot of mid-cap altcoin projects that have the potential to actually disrupt the future. Any and all technical analysis/price prediction by Leeson is not a financial and/or investment advice of any sort.
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