Bitcoin has been trading continuously in a range bound market for last 4 days. It tried many times to break that range on both sides but every attempt turned futile. Few hours ago, Bitcoin tested $6550 again and rejected again but this time, BTC got dumped under $6400 which was a strong support.
So, does this mean that we're going into downtrend already?
Is $6000 coming?
Well, not really but who knows, its crypto market by the way.
Let's have a look at the chart to assume all the possible scenarios:
As we can see in the chart, Bitcoin is currently trading around $6350 and looks pretty bearish. We have closed below the upper edge of our range which acted as a support for numerous times. Our 4-hr candle is likely to close under this range which indicates some Bearish signs.
- If Bitcoin dumps from current level, the first line of support would be $6250, although it is not a strong support. Then $6100 support would be in line. And if Btc breaks even $6100, then we're likely heading for $5800.
- If Bitcoin moves up from current price, the first line of resistance would be $6550 and then $6630, breaking both these levels would take BTC price to the $6800 level which is a high-resistance level.
- Market volume has been declining since yesterday. If volume increases greatly in a short-term time frame, we'll have to see the trend and trade accordingly.
- Triple-top is also in play and if it plays out as it should be, we might see the price of Bitcoin near $6000 range.
Always use stop-loss for each of your trade.
Thanks for reading ..!!