BTC/USD Testing Daily Trend Line Support, Preparing For Another Surge
Mohaimenul Jowarder | Jan 28, 2018 10:21AM ET
There has been a strong bearish correction in the BTC/USD price after it hit the critical resistance level at 19807.5.From that level the sellers took control of this market and pushed this pair significantly lower, creating a dark into the mind of optimistic BTC/USD traders. However, most of the professional investors are cautiously waiting to buy the bitcoin in the global market as it has been trading near the long-term trend line support level. Over the period of last two week, the pair has already rejected the trend line support level at 10080.0 forming bullish pin bar. A daily closing of the price above the minor resistance level at 128750.00 will confirm the rejection of bullish trend line support level.
BTC/USD daily chart analysis
Figure: BTC/USD rejects the bullish trend line support
From the above figure, you can clearly see that the bulls are trying to take control of the market from the critical support level at 10080.0.Most of the professional cryptocurrency traders are expecting a strong rebound from the current price level. The current price level is going to provide a significant amount of bullish support to the BTC/USD pair since the 61.8% bullish retracement level also in line with the medium-term trend line support. However the bears manage to breach the current support level, we might see a decent drop in the price towards the next minor support level at 9287.5.From that level, we might see some strong bullish recovery attempt but breaching the low of 17th January 2018 will confirm the end of the current bullish rally.
On the downside, the first bearish target for this pair is the critical support level at 8202.1This level is going to provide strong support to the BTC/USD pair and most of the professional traders will be looking for bullish price action confirmation signal to place fresh long. If this level fails to limit the downward movement for this pair, the ultimately bearish target will be the low of 11th December 2017.Most of the long-term investors will be cautiously looking for bullish price action confirmation signal near the major support level at 5560.5.But a daily closing of the price below that level will threaten the long-term bullish trend of BTC/USD pair.
Considering all the technical parameters buying the pair at the current price level with a tight stop below the low of 17th January should be very good trade setup. However, it’s better to wait since we might see some further drop towards the daily trend line support level at 10200.00
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