Today, after the bell of ending the session on Wall Street, the price of Bitcoin (BTC) unexpectedly plummeted, dragging the price back below $ 6,000 after hitting a 7-day high of $ 6,900. A drop of $ 1,000 from $ 6,670 to $ 5,670 certainly shocked many investors because it was lower than most analysts' adjusted estimates, but at the time of writing, it seems that traders “buy the dip”.
BTC price has bounced sharply at $ 5,700 and the bulls are now pushing the price back above $ 6,200. After this week's 82.4% rally from $ 3,775, Bitcoin is a bit overdue for a pullback and as discussed in the previous analysis, the price is expected to retest the basic support levels at $ 5,900, $ 5,500 or $ 5,380.
Despite having dropped $ 1,000 to $ 5,670, the RSI on the 4-hour time frame is still in an uptrend – above the ascending trendline in the bullish territory with a value of 62.
The MACD has started to decline from the overbought area, but the momentum on the histogram remains stable and the buying volume is on par with the volume before the pullback.
If the bulls can regain $ 6,400 and close here, then it will be a victory for the price of Bitcoin.
Wait for something?
In the next 4 to 6 hours, traders should keep track of trading volume on shorter time frames and also watch to see if the RSI drops below the rising trendline above the 4-hour time frame.
In addition, there is a dragonfly Doji on the 4-hour chart that shows that although the bulls have sustained selling pressure by buying on pullbacks, there is still a possibility of reversing the short-term trend, as suggested by the MACD, RSI and buy volume indicators.
In the case of a short-term trend reversal, traders will be looking for a rally at the support of $ 5,450 – where a high volume node of the VPVR indicator resides. Finally, after rising sharply from the weekly lows, Bitcoin nonetheless needs to retest the basic support levels (stated above), which is why the bulls have bought aggressively at the current decline. .
Disclaimer: This article is an analysis by cryptocurrency analyst Horus Hughes – a frequent contributor to CoinTelegraph. Readers should only consult, not consider this as an investment advice, especially from Toiyeubitcoin, we will not be responsible for your investment.
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According to CoinTelegraph
Translated by ToiYeuBitcoin
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