Hi all,
So, BTC made a huge drop yesterday after it was unable to surpass $10,360 and print a new year-to-date high there. I will probably repeat myself but, this horizontal resistance is not there for no reason.
The $10,360 level is not just a random number, but quite a heavy level as it was reached several times already in the last 7-8 months.
It was also seen as a major barrier in front of bulls back in 2018:
This is also part of my analysis in an old idea I published here:
Now back to yesterday's action. Bitcoin made an almost identical candle, but in the opposite direction, but found support at the Long-term downtrend line (now diagonal support). The nasty white dotted line, that is coming down on us since December 2017. The price of BTC/USD bounced back up to the horizontal support at $9,500-$9,600, but it was not able to move above it throughout the day.
It did today, though. After record-breaking failed attempts to break down $9,500 in the last 24 hours, the leading cryptocurrency finally climbed to $9,620 a few hours ago where it was stopped by the 100-day EMA on the 1-h chart.
This thing was starting to look like a bearish rectangle (and to some extent it still looks like such)
What I would like to see here before engaging in trading is a stable close above $9,600
By the way, trading volumes skyrocketed from $26 billion to $37 billion in the morning on June 02 when we saw price hitting $10,000 then continued to rise up to $42 billion AFTER the drop. This is a huge amount of positions traded in the span of 24 hours. It also perfectly shows the importance of the are we are currently in.
Cheers,
So, BTC made a huge drop yesterday after it was unable to surpass $10,360 and print a new year-to-date high there. I will probably repeat myself but, this horizontal resistance is not there for no reason.
The $10,360 level is not just a random number, but quite a heavy level as it was reached several times already in the last 7-8 months.
It was also seen as a major barrier in front of bulls back in 2018:
This is also part of my analysis in an old idea I published here:
Now back to yesterday's action. Bitcoin made an almost identical candle, but in the opposite direction, but found support at the Long-term downtrend line (now diagonal support). The nasty white dotted line, that is coming down on us since December 2017. The price of BTC/USD bounced back up to the horizontal support at $9,500-$9,600, but it was not able to move above it throughout the day.
It did today, though. After record-breaking failed attempts to break down $9,500 in the last 24 hours, the leading cryptocurrency finally climbed to $9,620 a few hours ago where it was stopped by the 100-day EMA on the 1-h chart.
This thing was starting to look like a bearish rectangle (and to some extent it still looks like such)
What I would like to see here before engaging in trading is a stable close above $9,600
By the way, trading volumes skyrocketed from $26 billion to $37 billion in the morning on June 02 when we saw price hitting $10,000 then continued to rise up to $42 billion AFTER the drop. This is a huge amount of positions traded in the span of 24 hours. It also perfectly shows the importance of the are we are currently in.
Cheers,
Commento:
By the way, the flash crash was a direct result of the sudden drop that occurred on Bitmex and which resulted in price reaching $8,600 in a span of about 15 minutes
