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Breaking Level for Bitcoin Is Close- Bears to Take Back Control?

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Bitcoin started the week with a lot of bullish sentiment with many signs pointing to movements above $8300. But after two tests of the $7850 support level, Bitcoin has since plummeted below many support levels. Analysts note the $7200 as a crucial level for Bitcoin. A close below this level is likely to be followed by a drop back down to $6850, which Bitcoin blasted past just two weeks ago. Price action is currently trading close to the daily 50EMA.

Bitcoin Daily Chart

The most recent drop can be seen in further detail on the 4hr chart. After trading in a range between $7500 and $7600 for several candles, bears finally took control and  the price moved from around $7550 to $7350 forming an extremely bearish marubozu candle. A marubozu candle is one which has a long body with little or no wicks showing strong movement in one direction for almost the entirety of the candle.

Bitcoin 4hr Chart

The hourly candle shows that we are now back trading in a range between $7300 and $7400. A move up is likely to be met by resistance at the hourly 50EMA. Markets alternate between trading in a range and directional movement.  The next directional movement looks likely to be to the downside with many signs currently supporting this prediction.  Momentum is currently with the bears with many resistance levels in play if Bitcoin does make a move up.

Bitcoin 1hr Chart

Bullish Case:

  • Downward movement has now finished as we approach the extremely important level of $7200
  • Volume has not been overly significant on the drops
  • Buyers will accumulate as price trades in the $7300 to $7400 range.

Bearish Case:

  • Momentum with the bears after consecutive drops
  • Next directional move will break below $7200 and most likely will drop further to $6850 from there
  • A move up will be met by many resistance levels. The hourly 50EMA is likely to be the first.
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Breaking Level for Bitcoin Is Close- Bears to Take Back Control? was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.