Analyst: Bitcoin Bearish Candle Could Spell More Losses


The week began in the red for the majority of cryptographic assets. Bitcoin has closed the week with its biggest red candle since December 2018 and analysts expect further losses in the future, as the correction continues.

From an intra-day high of $ 7,950, Bitcoin fell below $ 7,600 as the Asian trading session gets underway Monday morning. A slight recovery brought the BTC back to $ 7,680, but it was down 3% that day.

Bitcoin drops 10 percent of the week

The weekly display also showed a steady drop of $ 8,600 last Monday at current levels. It is a decline of ten percent in the week and the largest red candle closed since the big dump last December.

The trader 'CryptoFibonacci' noticed that the candle predicted further drops in the BTC;

"I hate to keep talking about it, but it's important. This model of candle is a model of inversion and must be respected ", before adding a tweet after its closure …« Update of the $ BTC Weekly chart. DO NOT like this candle model at all !! But, it is necessary after such a rise in power. Returns to come. Stay safe!

Many have considered the next level of $ 6,800 because it is there that the Fibonacci levels align and that the moving average is located. For the daily image, the $ 7,400 seems to be the next support zone in what appears to be the right shoulder of the diagram;

"The title, no pun intended, in the right shoulder of the head and shoulders pattern should arrive soon. After that, all the bets are open. It could still take about a week to develop. Waiting for higher prices and restless this week. Proceed with caution. "

Broken parabolic trend line

Other traders, such as Crypto₿irb, echoed this analysis by showing that Bitcoin was now below the parabolic trend line in the medium term. The daily chart seems weaker and weaker as Bitcoin failed to test $ 8,000 again. This was a key level for the bulls and the failure to close over it inevitably brought with it new drawbacks.

For most of last week, Bitcoins continued to consolidate around $ 7,800, with several declines to $ 7,450. It is now experiencing another of these troughs, lying in the lower part of this range.

As a result, the total market capitalization of cryptography has also decreased by about $ 10 billion over the past 24 hours. As usual, the Bitcoin retreat will cause major pain to the majority of altcoins currently sinking into the red.

Shutterstock's picture


Source link