Bottom line: Bitcoin long term structure continues to remain bullish against 3850 lows print in March 2020. The crypto has remained in control of bears since 12500 mark and might be looking to drop further towards 7200-7500 levels in the next few trading sessions.
Bitcoin had pushed higher through 10800 mark yesterday, before facing renewed selling pressure. The crypto had dropped over -1.75%, alongside global indices and risk assets. If risk aversion continues, Bitcoin might remain under pressure as safe haven US Dollar might continue to gain. Ethereum dropped over -3.17% closing around 341 yesterday.
Bitcoin has yet again hit resistance around 10800 mark and reversed. The crypto has carved a series of lower highs and potential resistances at 11200, 10950 and 10800 levels in the past few trading sessions. The triangle consolidation might break on the south side pushing below 9800 mark.
Bitcoin had managed to hit just below 12500 resistance on August 17, 2020 and since then it has remained in control of bears. A break below 9800 might accelerate further towards 9000 and 7200 levels over the next several weeks. Bottom line is that 12500 levels should hold well.
Bitcoin had dropped through 3850 lows in March 2020 before reversing higher. Bulls had remained in control and managed to carve a series of higher highs and higher lows through 12500 mark in August. The entire rally might be an impulse wave, which should be followed by a corrective drop.
Also note that fibonacci 0.618 retracement of the entire rally is seen passing through 7200/500 zone. If the corrective drop manages to reach there, high probability remains for a bullish bounce. Most traders might be inclined to hold short positions initiated earlier with protective stops above 12500 and projected targets towards 7200 support.
Harsh Japee, Technical Analyst.
This market commentary and analysis has been prepared for AT Global Markets UK Ltd (ATFX UK) by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.
MyFxtops 邁投 (www.myfxtops.com) -Reliable Forex Copy Trade community, follow the master for free to trade!
Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.
Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.