Bitcoin continues its downward price action, currently sitting at around $3700 on Blockmodo at time of writing. Over the past few days, Bitcoin has dropped in price with conviction, seeing a lack of buyers coming in to provide significant relief.
One current opinion sees Bitcoin waiting for a decisive move downward, complete with a long wick, followed by significant buyer volume coming in to reverse price, as well as possibly the trend.
Let’s see what the charts may indicate.
(Chart lines, patterns, conclusions, levels, prices, etc., are very subjective, based on opinion. Many times they are not exact, but simply estimates of ranges based on bias, opinion, etc.)
The weekly Bitcoin Bitfinex chart shows an interesting trend line (yellow diagonal) starting in late 2016. This trendline intersects with an important support level around the $2500 price line.
Interesting support levels on the larger time frame, below current price action, are around $2988, $2509, $1835, and $1327.
The daily Bitmex Bitcoin chart shows two daily wicks just below the $3568 support. Interesting supports for the daily chart include roughly $3568, $3218, $3013, $2571, and $1859.
The $4026 resistance above current price could prove an important zone. A strong daily candle close above $4100 could be important for the bulls.
The Bitmex Bitcoin hourly chart shows some interesting action for the past few days.
Price tried to break above the $4026 resistance several times, seeing rejection for the most part each time. The bottom trendline of the previous pennant even seems to have acted as a bit of resistance upon a few retests.
Price currently lies below the 50 Exponential Moving Average (EMA orange), as well as the Volume-Weighted Average Price (VWAP – purple).
Price has hit the $3568 support several times, with the zone holding well so far. However, the zone may eventually break after many repeated retests.
Price previously showed a bit of range bound action between the $4668 resistance and $4026 support for a few days before breaking downward.
It will be interesting to see if price action breaks out of these new support/resistance ranges faster than the last zone. (The two yellow boxes are roughly the same size/period of time.)
*This article includes opinions from the author and is not in any way financial advice. Writing about price levels is purely speculation, subject to speculatory bias. Nothing written is any kind of advice whatsoever.
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