From yesterday’s height at $219,169,876 the total cryptocurrency market cap evaluation has decreased by $29,335,239 to today’s low. Consequently, the market is in red with an average percentage of change ranging from 6-26% among top 100 coins.
The price of Bitcoin was below $6000 today but has recovered since the low and is currently above the mentioned level.
As the price is hovering around the mentioned level looking for support on the prior low level we can expect another drop soon.
Looking at the daily chart we can see that the price is heading toward the triangles support line which is around 5500$. That would be a lower low as the last one was at $5860.
Currently, the price is hovering at the $6000 area which was considered to be a significant support level in the past, because the first correction spiked down to those levels and bounced off quickly but then every consecutive low was a bit lower which is I believe that we the current one will be also.
Looking at the logarithmic scale we can see that the price is back in the upward as the price went below its resistance line.
This channel dates back from the beginning of 2015 when the last crash ended which is why I am expecting the price of Bitcoin to retrace back to its support levels around $4500 in the more longer-term perspective.
Daily chart technical indicators are signaling a strong sell.
- S3 4173.9
- S2 5319.4
- S1 5776.3
- P 6464.9
- R1 6921.8
- R2 7610.4
- R3 8755.9
Zooming into the 4-hour chart I have labeled the support area strong enough to hold this momentum and its between $5448 and $5259.
Zooming into the hourly chart we can see that the price action is forming a consolidative cluster looking like a minor wxyxz correction which is why I am expecting some short-term recovery before a breakout from the downside.