Bitcoin Technical Analysis: BTC/USD plunges below $4,000, drags entire crypto market lower before recovering on strong volume
BTC/USD capitulates below $4,000 towards 200 week MA $3,126
Bitcoin closes below the 100 week MA ($5,837) for the first time ever
Key near term support levels seen at 200 week MA $3,126 and $3,000
BTC/USD recovery underway, up 10% from lows, Is this the bottom?
Bitcoin has begun to show some signs of stabilisation in the past few hours of trade recovering strongly towards $4,000 after being down as much as 15% in the last 24 hours trading as lows as $3,657. BTC/USD broke $4,000 in yesterday's session, after finishing the week last Friday around $4,650, quickly capitulating towards the 200 week MA at $3,126.
After an epic rally at the end of last year which exceeded all forecasts, Bitcoin which accounts for 55% of the entire cryptocurrency market capitalisation, has become mired in a steep downtrend which has seen it lose over 80% in value from its peak around $20,000 reached in December last year, with the total crypto market cap falling from around $800 billion at the beginning of the year to a low of $115 billion overnight.
At the time of writing the total crypto market cap has recovered $13 billion dollars in the past 10 hours to $127 billion with Bitcoin leading the way with a 10% recovery from the lows.
Bitcoin Technical Analysis: BTC/USD is this the bottom?
BTC/USD is trading around $4,000 at the time of writing up 10% from lows around $3,650 on strong volume
Key support levels to watch $3,126 (200 Week MA) and $3,650 (Overnight low)
Key resistance levels $4,000 - $4,200 (Breakdown price confluence zone)
BTC/USD: Bitcoin price has entered uncharted territory on a weekly basis and a range not seen since October 2017. BTC/USD has lost 40% of its value in two weeks and now closed under the 100 week MA for the first time ever. From a weekly perspective this brings the 200 week MA into play at $3,143 and a critical area of support. On the upside $5,000 needs to be breached to encourage a further relief rally back towards the 100 week MA at 5,825. We are waiting for confirmation that a blow off bottom is in place on the weekly chart, with both price and volume placing us on high alert for a reversal, if BTC/USD closes above $5,700 on a weekly basis we will be confident that a low is in place and a reversal underway.
Support 1: $3,502
Support 2: $3,126
Support 3: $2,789
Resistance 1: $4,214
Resistance 2: $ 4,649
Resistance 3: $4,927
Technical Analysis Summary: Sell
Moving Averages: Strong Sell