Bitcoin is testing the support interval between $ 8,500 / $ 9,100, we must react quickly otherwise the trading range under $ 10K could tip in favor of the sellers.
Key technical factors of the article:
- 7 weeks of uncertainty on what the BTC is preparing in trading range under the major resistance of $ 10,000; it’s technically new.
- In the immediate term, the positive correlation with the US equity market is active, an upward boost in stock market indices could only serve the cryptographic trend.
The seventh week of trading range ends for the price of Bitcoin (as well as its faithful second, ethereum), the extreme resistance of the $ 10k still covers the market like a screed of reinforced concrete. But that, I know it, you know it, we know it by heart!
This is the first time in BTC's price history that the market has spent so much time under the long-term technical pivot, without breaking any support. Bitcoin is building a foundation, a solid foundation that will serve as the foundation for the next primary directional impulse, the magnitude of which will be several thousand dollars. On the other hand, it remains to be determined whether it will be around $ 7,000 (after breaking the major support at $ 8,500) or towards the records of the year 2019 (after overflowing the resistance at $ 10,000).
In my technical post this Friday, I present to you the graph of the Bitcoin continuous future contract of the Chicago Stock Exchange, it also oscillates between $ 8,500 and $ 10K.
Are the institutions losing patience, getting tired of this long wait that would be imposed on them? In reality we should not reason like this because they are the ones who make the market and currently it is a playing field where the strong hands to buy and the strong hands to sell compete. Which side will give up first, that's the good question.
I have always noted since the end of March a positive correlation between the trend of the S&P 500 and that of the BTC. The S&P 500 index, the benchmark index for global finance, has been neutral for 2 weeks, but it maintains its first strong support at 3000 points. If this index could experience an upward momentum, it would serve the interests of BTC buyers.
In any case, the BTC / USD is now testing the major support at $ 8,500 / $ 9,100, you have to (very) quickly rebound, otherwise the distribution side will impose itself on the technical battlefield.
Follow Vincent Ganne on Trading View for further analysis on the financial markets. The technical thresholds and the trend indicated above are based on the technical approach "price, momentum, sentiment, ichimoku". The data come from Bitstamp and the graphics of TradingView.
This content is provided for informational purposes only and does not constitute an investment recommendation. We remind you that theinvestment in crypto assets, including Bitcoin, is extremely risky. Cryptocurrency prices are prone to large and unpredictable price swings.