BTCUSD still in no man's land. Will new users save Bitcoin ?
Hi guys,
The BTC/USD pair was rejected again at the extremely solid $6,400 level. Personally, I'm looking for a drop to the zone around $5,650 in the coming days as the whole setup is quite bearish mainly in terms of the general lack of buying power and momentum from bulls' side.
24-h trading volumes increased from $30 billion on Monday morning up to $36 billion on Tuesday, which perfectly matched the short-lived bull run. The coin started to lose ground as soon as volumes started to drop and returned to $30 billion in the early hours of trading on Wednesday.
This is even more obvious on the smaller timeframes...
On the 1h chart, we clearly see the general downtrend was preserved after BTC was not able to break it for two straight days after numerous attempts. The coin is now clearly flirting with the horizontal support at $6,280 - $6,300. As you can see from the graphic representation of the idea, this zone already proved to be a solid resistance on March 28 (there is also a single red candle on March 30 right in the middle of the violent bull run, which confirms the level is a one to respect). The current setup also finds the horizontal levels crossing the more recent uptrend line (March 29) and the Fibonacci retracement level $38.20, making it even more interesting to watch.
By the way, we are now also trading below the 200-day EMA on this timeframe.
It is interesting to see that some of the biggest exchanges like Kraken and Coinbase reported a sharp increase in new registrations since the COVID-19 outbreak started mid-March. This means we can expect fresh money to be injected into the market in the coming weeks.
The BTC/USD pair was rejected again at the extremely solid $6,400 level. Personally, I'm looking for a drop to the zone around $5,650 in the coming days as the whole setup is quite bearish mainly in terms of the general lack of buying power and momentum from bulls' side.
24-h trading volumes increased from $30 billion on Monday morning up to $36 billion on Tuesday, which perfectly matched the short-lived bull run. The coin started to lose ground as soon as volumes started to drop and returned to $30 billion in the early hours of trading on Wednesday.
This is even more obvious on the smaller timeframes...
On the 1h chart, we clearly see the general downtrend was preserved after BTC was not able to break it for two straight days after numerous attempts. The coin is now clearly flirting with the horizontal support at $6,280 - $6,300. As you can see from the graphic representation of the idea, this zone already proved to be a solid resistance on March 28 (there is also a single red candle on March 30 right in the middle of the violent bull run, which confirms the level is a one to respect). The current setup also finds the horizontal levels crossing the more recent uptrend line (March 29) and the Fibonacci retracement level $38.20, making it even more interesting to watch.
By the way, we are now also trading below the 200-day EMA on this timeframe.
It is interesting to see that some of the biggest exchanges like Kraken and Coinbase reported a sharp increase in new registrations since the COVID-19 outbreak started mid-March. This means we can expect fresh money to be injected into the market in the coming weeks.
