Bitcoin to USD (BTC/USD) Price Goes Down
Bitcoin to USD (BTC/USD) price has fallen quite low as the cryptocurrency dropped another -2.17% to $3224 (Bitfinex) along with the complete market following suit. While it may look like this critical break of support was important. Also, there has been an unconvincing drop resulting in the price so far.
This can also suggest towards another potential trading range that could be parallel to the one we had experienced between $6000 and $7000. Hence, it doesn’t matter if you’re a seller, buyer or a Holder; there are a few indicators you will need to consider in order to move forward.
The Final Line of Defence for Bitcoin
The Weekly 200 Moving Average is depositing up quite a battle for BTCUSD. If we call it in terms of technical analysis, it is called the last line of defence for about any type of asset. We can witness the drop in price which is fluttering right near the brace on a weekly timeframe.
Sellers need to be practising caution as simply contacting the 200 MA which can deliver a 161.8% pullback when it comes to smaller timeframes. Also, a pullback might put BTCUSD back to the area of resistance i.e. $4400. Other than that, a break lesser than 200 MA could be accepted as long as the price is not getting closed below it (on a weekly basis).
The weekly Relative Strenght Indicator (RSI) has come to a nearly similar oversold level (28.96) as Bitcoin bear market (28.14) in the year 2015.
The 4-hour BTC/USD chart seems more convincing for the bulls or at least for the short term (if not for the long term). The RSI bullish divergence will have to be enough in order to cause a slight relief to recover. Also, it will have to be potentially a stronger reversal overall if it can manage to break (above the $3700) resistance cluster. In the case of weekly oversold levels approaching ATL levels, a hike to ~$4200 would be a question.
An Overcrowded Short – Bitcoin to USD
The BTCUSDSHORTS margin shorts (Bitfinex) have been able to manage in order to break there as usual highs from September. There is no doubt that BTC/USD have certainly become an overcrowded short. It doesn’t look like the short sellers are wondering to close the positions they have, and that’s quite expected and understandable. Why should they think about that?
There hasn’t been a decent spike that Bitcoin has seen in weeks. Hence, we are expecting a short squeeze to come sooner instead of coming later than this.
While at present, Bitcoin to USD price might be looking bearish but also there are a few facts that indicate and tell a completely different story. Hence, if you’re still waiting then I must say that this may not be the best time in order to panic sell.
What are your reactions on Bitcoin to USD downfall? Let us know in the comments.