When crypto markets fall hard in a few hours panic usually sets in. A torrent of sell orders usually floods the market until Bitcoin price finds support. This is exactly what happened yesterday, but zooming out will provide an opportunity to breathe as not all is as bad as it seems.
Bitcoin Takes a Breather
Since its big slide yesterday, bitcoin has found support in the $9,500 region according to Tradingview.com. There has been no attempt at recovery just yet so further losses could be imminent. Over the course of the week, BTC has lost around 8.5% but this is nothing new and has happened on countless previous occasions.
Bitcoin is currently at a critical support level, and is holding where it previously bounced. As trader and analyst Josh Rager points out, a break down from here will plunge the asset into the high $8k zone.
Currently holding above the previous low on the daily close but if price breaks down it’s going to $8,7ks. After that, it heads towards $8k but everyone is watching it so either it bounces before or goes through. Needs to break back above $10,100 to get bullish
$BTC Update
Currently holding above the previous low on the daily close but if price breaks down it's going to $8,7ks
After that, it heads towards $8k but everyone is watching it so either it bounces before or goes through
Needs to break back above $10,100 to get bullish pic.twitter.com/vWmbDhgekM
— Josh Rager
(@Josh_Rager) August 30, 2019
Many analysts, including Rager, seem to be willing a fall to $8k as it provides a better opportunity to accumulate. He added that it would be ‘awesome’ if bitcoin broke below this price level. The buyers waiting for the current price range may have run out of steam but there will be a lot more lurking at areas below.
Chart guru ‘Willy Woo’ has taken a look at the bigger picture which is still pretty healthy. Moving averages have served as reliable levels of support and resistance during both bull and bear cycles. The current is still definitely bullish and a retouch of the 128-day moving average is a very good sign according to this analyst.
Kissing the 128d MA is a very good sign. It was overheated till this. People familiar with BTC’s historic personality know that the 128d line needs to be touched many times during a bull market to stay grounded. They present good buying opportunities
Kissing the 128d MA is a very good sign. It was overheated till this. People familiar with BTC’s historic personality know that the 128d line needs to be touched many times during a bull market to stay grounded. They present good buying opportunities. pic.twitter.com/1QBo3QjtgD
— Willy Woo (@woonomic) August 29, 2019
A fall to $8k or even the massive support zone at $6k would still see bitcoin prices significantly higher than they were at the beginning of the year.
The uptrend is still very much intact so when the panic starts to ensue, zooming out could be the best therapy.
How low will Bitcoin price drop during this correction? Add your thoughts below.
Images via Bitcoinist Image Library, BTC/USD charts by Tradingview, Twitter: @woonomic, @Josh_Rager