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The arguments in favor of a big market correction are gaining strength. While Bitcoin is approaching another major resistance barrier, buying pressure is likely to decrease, as shown in the previous graphs. If and until where it will fall remains the big question this week.
Bitcoin approaching 50 weeks MA
When Bitcoin exceeded the 200-day moving average, there was a lot of optimism for a move up to $ 6,000. However, another important barrier comes in the form of a 50-week moving average aligned with additional horizontal resistance.
According to trader and analyst Josh Rager, this could create a pivot point for Bitcoin that was previously blocked by this technical indicator;
$ BTC the story says that the price does not exceed $ 5,634 before a decline
Previous bear market $ BTC was kept safe under the 50-week MA and the current 50 MA is close to $ 5,634
Add to that a horizontal resistance close to $ 5,559 and you have a very strong argument in favor of a potential withdrawal pic.twitter.com/C7LnIm7u6B
– Josh Rager ? (@Josh_Rager) April 8, 2019
Historically, the highest price of Bitcoin in the short term is perhaps only $ 5,634, which is the 50-week moving average. During the 2015 bear market, this level turned out to be a turning point of the hike that led to a final surrender before the start of a major recovery. The dump then saw the BTC fall to about $ 200, 82% more than its previous record. Sounds familiar?
The 200-week moving average, not to be confused with the 200-day MA Bitcoin broke last week, has been a strong support area at the time and today.
Withdrawal or more consolidation coming?
Graphics are wonderful things because they can tell the story you want to hear. Continuous consolidation is a counter-principle to the theory of potential decline. Bitcoins are consolidating for around 150 days around $ 6,000 before breaking down. When he did it he dropped 50%.
BTC also consolidated for about 130 days at about US $ 4,000, before the burst gained 25%.
$ BTC consolidated for 150 days at 6000 before breaking down.
Once this has happened, it has dropped by more than 50% in a month.$ BTC consolidated for 130 days at 4,000 before separating.
We are currently up 25%.I do not really see the rush short.
Even if we are rejected, it will take time. pic.twitter.com/esXIvTyv1n– DonAlt (@CryptoDonAlt) April 8, 2019
The $ 6,000 call for Bitcoin is also strong, but for the moment, it looks like the bearish outlook is the most dominant. The trade is largely psychological and many make the same mistakes again and again. Like "Twitter"CryptoFib& # 39; Put the;
"What makes me crack in trading is this. Everyone wants to buy when there is resistance. But, they never buy when it falls in support. Amazing how that goes and why 90% of traders fail. Everything is in the minds of people. "
It is these behaviors that determine precisely the levels of support and resistance and stimulate the market in both directions.
At the time of writing, Bitcoin stood above $ 5,200, but just after touching $ 5,300 twice and retiring twice. Since the start of the big pump last Tuesday, when Bitcoin reached $ 4,700, it increased by 11%. What is guaranteed is that when it corrects, it will fall quickly and hard before finding a new level of support, which should be in the $ 4,000.
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