Where Is The Bottom For The Bitcoin Bear Market?
Updated
Hello, traders!
There are much fear and uncertainty on the cryptomarkets now. There was a huge panic sale to the $30.000, as a result a lot of people bought this dip, but now we can see signs of concern that the price can go much lower. Even the bear market need the correction to the upside. In this article we consider the possible level where the price can bounce off.
GLOBAL DEMAND ZONES
First of all let's take a look at the Bitcoin price chart with the weekly timeframe. There are three demand zones can be divided: green, blue and the red lines. The nearest zone of the interest is is the $23.297 price level. It can be the first possible level when the price can bounce. Let's examine in details why it can be the truth.
BITCOIN SHORT TERM ANALYSIS
The price now is forming the falling wedge which has the high probability to be broken to the upside. The price also was rejected by the $42.000 resistance and the wedge's upper band. The next possible level is the crossover of the first demand zone and the wedge's lower band. From this point the price can bounce and break the wedge, test the $30.000 resistance and drop to the most major support around $18.000 - $20.000. From this level the correction of the bear market is the most probable.
After that the price can continue to decrease according to the the red scenario to the possible global bottom of $7.500 or revive the bull market. The key level for the bull market continuation is the support above the $42.000.
During this price drop it is recommended to take a long trades only on the major demand zones and close the position next to the local resistance.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
There are much fear and uncertainty on the cryptomarkets now. There was a huge panic sale to the $30.000, as a result a lot of people bought this dip, but now we can see signs of concern that the price can go much lower. Even the bear market need the correction to the upside. In this article we consider the possible level where the price can bounce off.
GLOBAL DEMAND ZONES
First of all let's take a look at the Bitcoin price chart with the weekly timeframe. There are three demand zones can be divided: green, blue and the red lines. The nearest zone of the interest is is the $23.297 price level. It can be the first possible level when the price can bounce. Let's examine in details why it can be the truth.
BITCOIN SHORT TERM ANALYSIS
The price now is forming the falling wedge which has the high probability to be broken to the upside. The price also was rejected by the $42.000 resistance and the wedge's upper band. The next possible level is the crossover of the first demand zone and the wedge's lower band. From this point the price can bounce and break the wedge, test the $30.000 resistance and drop to the most major support around $18.000 - $20.000. From this level the correction of the bear market is the most probable.
After that the price can continue to decrease according to the the red scenario to the possible global bottom of $7.500 or revive the bull market. The key level for the bull market continuation is the support above the $42.000.
During this price drop it is recommended to take a long trades only on the major demand zones and close the position next to the local resistance.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
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