Yesterday, the bullish move brought Bitcoin into the area between $ 6,000 and the $ 6,500 resistance was so strong that the bull could not overcome. This has led to another fusion fever at this level.
One analyst noted that Bitcoin bulls are currently "being tested" after losing important technical levels that previously fueled price action.
If the bulls want to continue expanding their new detection momentum and push the cryptocurrency higher, it is imperative that buyers must protect the cryptocurrency from falling below $ 6,350.
Bitcoin lost an important technical level after entering the consolidation phase
At the time of writing, Bitcoin is trading down 2.28% at the current price of $ 6,326. BTC climbed to this high after falling to $ 5,800 recently.
The fact that the short-term uptrend has stalled at the first critical resistance, shows some potential weakness and was rejected at this level.
According to analyst Big Cheds, BTC has recently lost the EMA 8 and with the current sideways trading situation it will be a test for the bulls.
- Big Cheds (@BigCheds) March 31, 2020
"Bitcoin: 1 hour - Bull crawl after losing the 8 EMA, falling below BB and up."
$ 6,350 is the main support and breakdown of this level will cause catastrophe
According to analyst Michaël van de Poppe, Bitcoin's current trading range ranges from $ 6,350 to $ 6,500, with the lower boundary being an important short-term resistance level.
Mostly range-bound, but something interesting that this monthly / weekly level at $ 6,350 provides support here.
Might tap the resistance around $ 6,500-6,600 again, but mostly range-bound and not showing direction.
Breaking range -> targeting $ 7,100 / 7,300. pic.twitter.com/MXpx6pq2GI
- Crypto Michaël (@CryptoMichNL) March 31, 2020
“Bitcoin: Mostly limited to the range, but what's interesting is the monthly / weekly level of $ 6,350 providing support. Able to hit the resistance around $ 6,500-6,600 again, but it is mostly range bound and shows no direction. If the range breaks down, the target is $ 7,100 / $ 7,300. ”
If Bitcoin breaks below the short-term support level, it is very likely that it will continue falling until the retest of the established support at $ 5,800, falling below this level will cause BTC to fall freely.
The cryptocurrency market chart formed a reversed head and shoulders pattern
Corona virus has killed thousands of people and devastated the economy, bringing financial markets into turmoil, including the world of cryptocurrencies like Bitcoin, ETH and hundreds of other altcoins in the market.
When worries about the pandemic spread quickly to its peak, the market collapsed catastrophically. The Dow Jones has witnessed the worst losses since 1987 and the total market capitalization of cryptocurrencies has dropped to just over $ 150 billion in the past month.
The plummeting Crypto wiped out more than half of the total value and market capitalization, but the asset has recovered more than $ 50 billion in losses and limited the range above the recent lows.
However, if the ominous pattern of the total capitalization chart appears, retesting lows may occur.
Regarding the total market capitalization, we can see the potential head and shoulders pattern formed in the 4 hour time frame.
Signal target model retest low level of nearly 130 billion US dollars
Head and shoulders are often reversal patterns found at trend trends. This shows that the recent rally has ended and the model's goal is to bring the total market capitalization back to a low retest of around $ 130 billion.
The goal of the structure is to stop setting new lows below $ 109 billion, where the market dropped just a few weeks earlier.
Charts will not be considered valid until validated. However, the decreasing volume as the pattern continues to form is a sign that confirmation might occur.
According to the paradigm, the price will fall into monthly close today, forming the right half of the shoulder and bringing the price back to the support of the neckline.
If that support appears and the total crypto market capitalization is below the neckline, the pattern is valid and the target begins.
However, if the bull uses the right shoulder to push prices higher, it can create a short squeeze that brings total market capitalization to unprecedented highs since February or January - long before Corona spills in. market and caused catastrophic collapse.
You can see the price of BTC here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to AZCoin News
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