At last, Bitcoin price stopped taking strikes from its crucial resistance level near $6,500 and went for a home run, instead.
Then, the referee called it a foul. In simple words, Bitcoin crashed towards the same consolidation range that was holding it before the upside breakout.
The BTC/USD on Wednesday attempted a strong upside breakout, rising as much as 7.8 percent and coming out of an overlong consolidation phase. The pair started began the day on a bearish note and slipped towards 6440-fiat. It, however, began to express a massive bullish sentiment during the early Asian trading session and jumped from 6441-fiat to 6899-fiat within an hour. The pair then slipped further owing to a considerably large long positions getting executed. The correction accelerated during the European session and formed lower lows towards 6610-fiat. And now, at the beginning of the US session, the price has almost negated its gains following a massive dump.
Following the jump, we were able to draw some amazing profits from our long positions towards 6700-fiat. Not ready for a dump as this one, we refrained from entering any new positions. It is advised first to note the scope of the latest crash. For now, it has rested around 6400-fiat, but an extended correction could bring the price to as low as 6300-fiat.
If we are able to bounce back from here, we will find our new support near 6400-fiat, while once again looking at 6500-fiat as our potential resistance level. At the same time, our upside target on a breakout above resistance would be towards 6550fiat, and our downside target on a breakout below 6400-fiat would be towards 6300-fiat. In either case, our stops will be placed 2-pips above/below the entry points.