Strong Challenge For Bitcoin Bulls, Long-Term Trend At Risk
Mohaimenul Jowarder | Feb 09, 2018 06:38AM ET
Finally, the bitcoin bulls are facing a strong challenge in the global market as the sellers are trying to take full control of the market. The BTC/USD pair faced an extreme level of selling pressure after securing a record high at 19811.8.From that level, the sellers pushed the price significantly lower towards the 61.8% bullish retracement level drawn from the low of 15th September 2017 to the high of 17th December 2017.The pair found some decent support near the 61.8% retracement level but ultimately the sellers managed to breach the major support level at 9435.7
Figure: Breach of 61.8% bullish retracement level in the daily chart
From the above figure, you can clearly see that bears have taken control over the market after the price broke below the critical resistance level at 9435.7.However, the BTC/USD pair has found some decent support near the minor support level at 6029.9.According to the chief analyst of Gaea Solutions, a daily closing of the price below the 6029.9 level will create an extreme level of chaos in the global market due to the possibility of opting out of the leading cryptocurrency investors.
If the bulls manage to clear the critical resistance level at 9435.7 we might see some extended bullish rally in the BTC/USD pair towards the next major resistance level at 11455.5.From that level, we might see some ranging market. Unless the bulls manage to break the major resistance level at 13396.1, the sellers will dominate the market. But a daily closing of the price above 13396.1 will confirm the initial bottom formation of the pair at 6029.9.If the BTC/USD bulls manage to regain their strength we will ultimately clear the high of 17th December 2017.
On the downside, we have plenty of support level but the extreme selling pressure might cause a major drop in price. A daily closing of the price below the minor support level at 6029.9 will ultimately lead this pair towards the next major support level at 3099.2.This level is going to provide strong support to the BTC/USD bulls and bullish price action confirmation signal will be an excellent opportunity to place long orders. Considering all the parameters it’s better to stay on the sideline until we get a clear clue of the next movement of the market.
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