LAST CHANCE TO BUY BITCOIN OR LAST CHANCE TO SELL BITCOIN??The cryptocurrency market capitalisation has lost over $100 billion over the past week, with leading cryptocurrencies falling over 13% in the last 24 hours alone. What has played a major part in this decline is regulator pressure, as well as the high sell volumes on the CBOE 0.38% and CME futures markets.
Bitcoin’s bulls support that investors should remain calm and hold on to Bitcoin -7.70% , yet it is worth remembering that there are ordinary investors that bought the currency when its price was twice as high and the difficulty in mining only half of what it is now. It is likely that some Bitcoin -7.70% supporters may lose their faith in the cryptocurrency in case it falls from its current $7,000 levels to $6,000.
What’s also worth noting is that Bitcoin’s improving transaction speed has harmed Bitcoin Cash -9.58% , created to solve Bitcoin’s scaling problems. BTH has experienced a 5,5% decline in the last 24 hours, now trading around $730.
Pavel Durov’s Telegram has also encountered scaling problems. The impressive promotion of his ICO -12.50% project, TON, has led to a significant growth in the number of Telegram users, with the messenger attracting over 700,000 new users daily. Issues faced by it have seen service failures in the last couple of weeks.
In all, the crypto market trading volume has plunged, and a rise may perhaps only be provoked by sellers. What’s on everyone’s mind is whether this is a good opportunity to buy or the last chance to sell.
TECHNICALS OBSERVATIONS
1. RSI in oversold area.We can see also a bullish divergence as price had reached those levels again on 5th of February.
2.We can see the 2 descending channels,the wider blue channel and the shallow red channel which price respects both of them.
3.We can also notice the Ichimoku clouds that created a resistance zone which the decreasing demand for Bitcoin -7.70% as mentioned brought the price to rejection and previous lows.
4.We can see also all the important zones with the dotted black lines based on previous price action.
5. Volume indicator shows us that after a great sell of we had the buying volume the next day or two was way above the MA of the Volume indicator(Watch red arrows),this time we have something different as this buying volume isn' t there,at least not yet.
POSSIBLE TRADES
LONG POSSIBLE TRADE
ENTRY AT 6.900
STOP LOSS AT 6.200$
TARGET 1 AT 10.000$
TARGET 2 AT 12.500$
POSSIBLE SHORT TRADE
ENTRY AT 6.250$
BUY STOP AT 7.200$
TARGET 1 AT 5.200$
TARGET 2 AT 3.000$
THANK YOU FOR SUPPORT!LEAVE A COMMENT OR YOUR OPINION OR A QUESTION YOU HAVE!
HAPPY TRADING!
