Market Outlook: Bitcoin Testing Crucial Areas
BTC spent the last 3 months rangebound before finally having a strong break that resulted in over a $1,000 drop within just a few short hours and eventually fell as low as $7700.
The important spot to watch is the $7,400 support as that marked the last major higher low on the move up off the bear market lows and would look to be defended.
If support gets bought up in that region it’s quite possible to expect that we see the BTC price continue onwards and upwards as the market structure from the originally rally would be kept intact on both the daily and weekly charts.
A breakdown of 7.4k with a weekly close below could very well start bringing on the mid to low 6k’s and would be extremely bearish and quite possibly mean that we are in fact ready for a multi-year bear market.
Not only would it break the last major higher low, but would be over a 50% correction from the highs which BTC has not done often in it’s bull markets with most being around 38% give or take a few percentage points.
For now I will remain bullish on BTC as long as 7.4k holds on a weekly level as it’s a level that we have marked out in a previous analysis to be visited if the 3 month range broke down and appears to have been the case.
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Pentoshi is a macro trend trader who specializes in price action technical analysis utilizing high time frame pivots. A full time Crypto trader who is now directing focus on trading education.
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