Welcome to this week’s Cryptocurrency Weekly Analysis.
On this week’s market activities, we saw a huge downward slide after a long period of consolidation as Bitcoin lost more than $700 and the altcoin assets broke their support levels and have shown no bullish strength.
Crypto analysts presented so many contradicting views about the direction of the market but those that leaned towards the direction of the bears were right as the “mighty one” in crypto market dipped by four figures on Thursday.
Bitcoin
A look at the intraday charts of Bitcoin clearly shows that from an intraday high of $10,295 devoid of bullish momentum, the coin dumped more than $700 in less than an hour, found a temporary support at $9,550 before the bears created more losses and the slide deepened, bottoming out at around $9,357-$9,230.
The major fundamentals analysis for Bitcoin was a statement from the co-founder of Morgan Creek Digital Assets, Anthony Pompliano stating that the European Central Bank (ECB)’s expected dovish turn will be “rocket fuel” for Bitcoin.
From the technical standpoint, on the daily time frame, Bitcoin hit a major demand zone at $9,447-$8,789 thou the demand zone is not fresh and a breakout is possible if price cannot find demand at that zone. We expect a bullish reaction at the zone for the uptrend to resume. On the other hand, if the bearish pressure intensifies and price slips beyond this zone, we should be looking at $8,064 for a bullish overturn.
When Crypto assets slide hard in few hours panic usually sets in, sell orders flood the market until the price of the crypto asset finds support, this is exactly what happened on Thursday but zooming out to see the bigger picture, you will definitely have the opportunity to breath as it is not as terrible as the way it appears and you will see a clearer vision of the direction of the coin.
Since its big slide yesterday, Bitcoin has found support in the demand zone at $9,447-$8,789 regions, there has been limited bullish activity as no attempt at recovery so further losses could be imminent. Bitcoin is currently at a critical support level, and is holding an already tested demand zone, a break down from here will plunge the asset into the lower $8k demand zone.
A fall to $8k could see Bitcoin prices significantly higher than where they were at the beginning of the year. The uptrend is still very much intact so when the panic starts, ensure you zoom out to see the bigger picture to get the convincing therapy.
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