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Bitcoin Price Drops to $9,600; Panic Sales Simplify Bears’ Task

  • Daniel Osten
    📈 Price Predictions

    Battle with an invisible enemy: bears came from nowhere and managed to drop Bitcoin price to $9,600 despite former evidence of a reversal.


Bitcoin Price Drops to $9,600; Panic Sales Simplify Bears’ Task
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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

By the beginning of Friday, despite numerous signals to the contrary, the bearish trend persisted on the cryptocurrency market. Now it’s clear that the situation is not just a local, but a full-fledged correction that involves all assets. Due to the buyers’ indecision, total market capitalization decreased to $425 bln which is comparable to the value from Feb. 10, while Bitcoin dominance did not change and still makes up 39.2 percent. The instigator of the whole event (yes, we do mean Bitcoin) lost close to 10 percent in the course of 24 hours, trading around $9,800.

Investors are digging their own graves

In yesterday's review, we mentioned this scenario, although its likelihood was not high. At the moment, the decline is taking place in the absence of any negative crypto industry news, so we can fully appreciate the power of the collective unconscious in the market. Investors, apparently still not recovered from the events of Feb. 5-6, are prepared to book minimal profits or just break even, for fear of history repeating. But history does not repeat quite so quickly, and we are not yet discussing the possibility of new lows. This correction cannot be a protracted one by definition. Therefore the main recommendation for readers remains in force, remain calm and avoid rash decisions. Profits will come to those who are patient.

All assets show similar decline rates

Returning to cryptocurrency prices, let’s take a look at the top 10. Ethereum was least affected, with a loss of 4.5 percent. Litecoin suffered the most, falling by almost 15 percent. Other coins are spread out between them, with decreases of 10 to 12 percent. Beyond the top 10 the situation is similar: except for some individual coins that showed one digit growth, the average price drop is also about 12 percent.


BTC/USD

With their panic sales, Bitcoin investors continue to create problems for themselves which they will have to overcome later with great effort. We're talking about the young descending channel that formed at the peak three days ago. Now, to confirm the growth scenario, the price has to overcome this channel first, and only then make a second attempt at the long-term descending channel.

01_23.02

The current price decline was stopped at the 0.382 Fibonacci retracement and now Bitcoin price is at the $9,800 mark, which we also mentioned yesterday. If the decline continues, the next strong support level will be the $8,900-$9,000 zone. Judging by the volume profile, this is the range where purchases predominated over sales. In addition, this is where we find the equally strong 0.5 Fibonacci retracement.

02_23.02

Japanese candles indicate that a rapid change in the trend is possible. We see two “hammer” candles with long shadows and short bodies. Often, such combinations anticipate a reversal or in any case reveal that buyers have started to defend the price. At such levels, buyers should have no reason to sell long positions.

ETH/USD

After the previous collapse, Ethereum was recovering more slowly than other assets, so it had almost nothing to lose. At the time of writing, ETH is trading around $840 and continues (like other coins) to respond sensitively to the slightest fluctuations in Bitcoin price. The bad news is that in the course of the decline Ethereum had already fallen out of the lower register of the ascending channel, beyond which, there is a void and an absence of trading volumes.

03_23.02

So far, support was found at $790- this price has been touched by the shadows of four-hour candles thrice, and each time buyers found the resources to support the asset. In case of further decline, the next support, formed by the mirror level, will be at $750. The scenario of an increasing Ethereum price is too early to consider, but we advise our readers to watch the boundary of the closest descending channel, transition to active growth will depend on breaking it first.

LTC/USD

Unlike Ethereum, Litecoin did have something to lose, and we were right to recommend that our readers decrease long positions. Thursday’s minimum value was $182, which nearly coincides with the 0.5 Fibonacci retracement. With a great deal of confidence, we can say that the minimum will be updated in the event of further Bitcoin decline.

04_23.02

In the event of breaking through the downward channel, the next support level is in the range $163-$168, where readers can safely resume growing long positions. Although, the price may not drop so low, on the chart we see a "hammer" candle, which indicates a possible reversal. In any case, everything will depend on the behavior of Bitcoin, and the closest attention should now be paid to its price fluctuations.

Cover image via u.today
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Pump or Dump? BTC Price Analysis Is Interpreted in Two Opposite Versions


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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

One of the most extravagant crypto traders on YouTube, Crypto Kirby Trading, has come up with his own observation of Bitcoin price predictions and technical analysis. His notes give us a hint that there are two ways for BTC to go. What are they? Watch this YouTube video and check out which BTC price theories the trader has.

Head & Shoulders pattern – a bullish sign

Head & Shoulders bearish pattern cannot stay unnoticed – we can see it forming from the beginning of April until now. However, the right shoulder hasn’t formed yet, so the pattern should be confirmed – don’t rush to make conclusions.


What happened recently when BTC fell into the abyss? According to Crypto Kirby Trading, it was resistance short. Shorts got a little bit high, and they squeezed it. In fact, the recent squeeze didn’t bring us anywhere – it’s like nothing happened.

At the moment, BTC goes sideways and sees resistance. Judging by H&S pattern, the volume peak has been reached, and now we are under resistance line in the right shoulder. If BTC’s price suddenly goes up, the pattern will be invalidated.

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Pattern within a pattern

Which pattern has been taken by BTC? It depends on how you look at it! What do we have here?

Descending triangle pattern or an ascending triangle (a little bit longer term)? Both are possible!

There has been lot of speculation about these patterns – that’s the problem. So, we have two different triangles and H&S, three patterns at the same time. If the H&S or descending triangle get validated – BTC is expected to go down to $5,000 and further into the abyss.

Take a look at the chart. We are still trading below the key resistance in the red box, and the rest of indicators still look bearish. We haven’t been trading so low since February 2018! That’s why it’s hard to believe that we will pump.

According to Crypto Kirby Trading, the $6,000 resistance might be very hard to beat – the hardest in BTC history. Very unlikely that it will happen in the nearest time, but who knows?

So, what should happen?

Crypto Kirby Trading  reckons that the possible $4,500-$4,300 would be a better bottom to buy BTC even than at the winter level. However, you should be very attentive. We are testing the November 2018 levels, and it’s important to make proper adjustments here.

Currently, the volume has been higher than in the previous months, but it’s not promising – it seems to be declining gradually. If we go down, we will reach consolidation to resistance.

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What should happen for a dump?

If we move sideways without touching resistance, expect a bearish period, and we’ll continue adjusting the triangle pattern until it breaks. Confirmation of patterns is required – don’t rush to make conclusions yet.

One more thing signifying a possible dump is the Fear & Greed Index – 61, which means we can fall as it always occurs when we get greedy and want to squeeze maximum profit from the market.

What should happen for a pump?

For pump, we should break the red box ($5,750). We should test the top of the box as well as the H&S and reach new volume – we want this boom to happen and bring us to the top, don’t we? If that happens, opportunities can get insane because the bulls vs bears battle will be epic. We might get through $6,000-$7,000, but of course not without failing the first attempts to scratch the top – it always happens this way.

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