Bitcoin approaching major support, will it hold?

Bitcoin is approaching long term support around $9,245. This support area is a confluence of many former resistance, now support lines drawn from former highs. Further, we can see divergence beginning to form in the 4 hour RSI and Stoch. This type of trend analysis has worked really well with Bitcoin. My guess is that, if it were strong enough to break through resistance and hold there for several weeks, it's more than likely it will continue higher after a brief retest of breakout resistance, now support. That said, carnage in cryptoland last week was significant and probably not over yet.

What fundamentally might be behind last week's crash? Purely anecdotal, but the demographics of the crypto space are that they are largely traded by younger people who are comfortable with trading them (a lot of older people just don't get it). Think about what these young people are going through right now. A lot don't have jobs and their unemployment benefits are running out are already exhausted. Last week was the first of the month. I think people had to cash out to pay rent.

With support coming up on Bitcoin, maybe there's a silver lining? Another big stimulus package coming, perhaps?

imdp

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