Well, everyone is panicking AF over the bitcoin drop from $8540 ------>>> $6100 in just couple of days. Well lets see what were the reasons for another sell-off and lets see the technicals to see where it will find the ground.
Couple of days back when Bitcoin was at a high of $8500 region, it was all due to the ETF Hype. Every single person on planet was expecting that the ETF would be approved this time. Lesser they knew that the ETF was applied by two parties.
It was applied by the twins Winklewoss and by CBOE. Approval for CBOE was important for the struggling sector of Cryptocurrency.
As soon as ETF applied by twins got rejected, it spread like wild fire into social Media platform Telegram and people started to dump BTC and started spreading the FUD.
This FUD initiated the current selling off cycle. Later on CBOE's Approval was postponed which resulted in another massive sell-off.
Weak Hands got scared and are currently exiting the market due to the sell-off event (Which is healthy for such a volatile Market).
Now Lets get onto the Technical Analysis for BTC.
Well, by looking into the chart we can clearly see that the price movement wanted to test out the upper resistance line of falling wedge(bullish Pattern). As the daily failed to break above the resistance line, we saw a massive sell off phase.
Let's now observe the technical indicators closely.
MACD: The histogram started to curve back down on daily which indicated that the selling off event is coming sooner.
Stochastic RSI and RSI : Stoch RSI and RSI was at its peek and was in overbought region, which indicated that cool off is coming.
What to Expect Next ?!
According to the charts and data we have, $5400-$4900 range looks like a reasonable target that region stands support for the falling wedge pattern formation.
This region also co-incides with the 0.786 fib level taken from the start of the previous bull run.
PLEASE NOTE: ALL THE ASSUMPTIONS AND ANALYSIS IS MADE BY ME. BY PLACING MY VIEW ON THE PLATFORM DOESN'T CHANGE VIEW OF MANY OTHER TRADERS. CREATING FUD AND FOMO IS NOT MY INTENTION. ALL THE POINTS GIVEN HERE ARE FOR THE KNOWLEDGE AND CAN BE USED AS FOR EDUCATIONAL PURPOSES ONLY.