Well, Bitcoin has been consolidating since the dump yesterday around $7500-$7600. Nothing significant happened on either side. Bitcoin has been trading within this trading range and now people are having mixed views regarding the possible direction of Bitcoin. All the euphoria has been depleted from the market and certainly we can see some fear again. The fear of potential Bearish run by Bitcoin.
So, is it going to happen really?
Is Bitcoin going into Bearish phase again?
Well, apart from the fundamentals (which are strong by the way), let's see what Technicals suggest us:
As we can see in the chart, Bitcoin has dumped by $800 in last 6-7 days after increasing by $2000 in only 15 days and now people are panicking over $800 move. Come on people, this can be a healthy consolidation period for Bitcoin.
Now, let's see all the scenarios of Bitcoin:
- Currently trading within this $7500-$7600 range, if bitcoin breaks $7500 level which is also a 0.382 Fib level, we can expect the next brake of Bitcoin around $7200 which is 0.5 Fib level. But BTC has to break $7500 with volume which is missing currently.
- If Bitcoin breaks $7700 resistance which it broke with volume yesterday, we can expect the continuation of our Bullish run in Bitcoin and then next level of resistance would be $8000 and then $8300. In this scenario as well, Bitcoin has to break $7700 resistance with volume.
- Market capitalisation has gone down to $268 Billion while BTC dominance is still holding over 47%, that means market is still expecting huge movements in Bitcoin.
So, guys don't panic and see the market with calm mind. Use stop loss for each of your trade to avoid any big losses.
Thanks for reading ....!!