Overhead falling resistance forming on Bitcoin could develop a declining channel taking price levels down to $ 9,000 over the coming week. This will allow side-by-side consolidation to take place around $ 9,000, which is an important historical psychological support / resistance level that allows volume to hurry back to the Altcoin market.
Bitcoin 4-Hour Chart
On Bitcoin 4 hour chart, we can begin to see a declining channel formation. This is not confirmed yet there are only 2 out of 3 needed contact points from candlesticks to my expected channel support and resistance. Downward volume would adjust well with a withdrawal to the $ 9,000 region around 200EMA confirming the descent channel.
My short-term outlook for the next few days is apparently bearish, given the expected repayment, but a withdrawal to $ 9,000 that forms the downward channel will still keep the day's performance intact. It is highly probable that the descending channel has been formed. There will be a breakout on the upside trying to create new heights. Downward channels formed during an appearance are inherent boom.
Consolidation within the expected descent wedge is likely to give Altcoin space for short-term growth. Overall, a withdrawal would be nothing to be afraid of, as mentioned in this earlier analysis. and is much needed to maintain the present trend, while Altcoins can skip their historical support that many of them currently rely on.
Bitcoin Weekly Chart
BTC weekly chart we can see rising volume, opposite to what we can see at 4 hour chart. This, accompanied by the fact that there have been no red weekly lights since February 2019, is a good indication that a short withdrawal is needed. POC (Point of Control) sits around $ 6,200, which is also where the CM Super Guppy indicator has flashed green, which means there is considerable support and large orders resting on the market around this price point.
There are highly unlikely price levels will fall below $ 6,200 mark, I will consider this the critical support level, which means that if this is broken, the general trend of the BTC will also be destroyed and will be a significant sales signal. Key levels of support to look at today's market price and critical support are $ 9,500, $ 8,000, and $ 6,800. There is a significant chance that BTC will fold extremely fast to liquidate long and cause panic over the market before recovering. traction, this has happened before every bull phase in the BTC story, something every trader should prepare for.
MACD has clearly crossed the Median to the upside as a result of the recent uprising. It is likely that a withdrawal will cause MACD to move sideways during this period before re-emerging. BTC dominance is currently 61.9%, I expect a withdrawal will take BTC dominance back to the 55-57% region, which is the proportion that maintains the previous altcoin bull phase throughout Q4 of 2017. The current overall Crypto market cap Located around $ 333,000,000, this must continue to increase steadily against $ 500,000,000, so Altcoins can flourish, while BTC is starting to get a brief move.
Do you think BTC will hold over $ 6,200 critical support? please share your thoughts and comments below!
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