CV Analysis: Bitcoin Price Approaching Key Trading Levels
As Bitcoin trades around the $8,200 range, there are considerations and opportunities to look at.
If you take a step back from the chaos of trading and look at the overall BTC chart, it’s easy to see that Bitcoin has been on a tear since 2015. There was exponential growth in 2017 and the market looks set to cool off from the all time highs set in December. That being said, there is definitely long term growth potential here, as you can see the consistency in the higher lows since 2016.
If we take a closer look, you can see the upward sloping trend line with some key levels that I’ve indicated. A drop below the $8,000 mark could signal a fall into the $6,500 – $7,500 range. There would be further downside support around $5,700 level if the head and shoulder pattern below breaks the neckline, though I think this is highly unlikely. We could see the formation of a double bottom or the interim formation of a W-pattern, which could signal a bearish trend reversal if BTC can bounce off those levels.
If we take an even closer look, the table below is a key level that is worth keeping an eye on if you’re looking for a quick trade on the downside and looking to short on a downside break. The depth charts show a buy wall forming around the $8,200 level, so keep your eye on this while the trend develops, because it may be a good entry point for some quick gains as well.
Nothing in this article is to be construed as investment advice. Neither the author nor the publication takes any responsibility or liability for any investments, profits or losses you may incur as a result of this information.
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