After we bounced off aggressively from the 6000$ support, we have seen declining volume and not the most definite price action. Although on the chart we can see that BTC is moving higer, it is still in a strong downtrend.
As you can see price is between the 200 SMA and 8-say EMA (White line and red line) and it is narrowing, which essentially means that we might see a strong upward or downward movement very soon. I think few weeks of consolidation will give crypto investors the confidence that is lacking lately.
What's Next?
- If we close above the red line, we might expect BTC to attack the 9000$, where we will have a relatively strong resistance
- If BTC closes below the red line and especially with a red bar, I would expect to see a re-test of the 7500$ level.
- If BTC closes in the middle of the red and white line, I would expect to see a very tight range.
Currently a lot of money on sidelines wait for a confirmation to jump in. With liquidity drying up, because of Binance's trading halt, some of the signals from the chart might be false. I am very positive that a bit of sideways price action is very good in the long-run.
What are your thoughts on Bitcoin and cryptocurrencies these days ? Let us know in the comments :)
