Disclaimer: This article is not intended as an investment advice and published for educational purposes only. BTC markets are highly volatile and risky in nature. DYOR before making any investment decision rather than listening to a stranger over the Internet.
Bitcoin’s parabolic rise from $3,100 has come to a screeching halt at $13,880 on Bitstamp, where it faced strong selling pressure. This level is critical across multiple time frames including monthly, weekly, 3-days, and daily. There was one major clue which revealed the strong bears’ territory around $14,000: the volume. The highest selling volume (since BTC started an uptrend in Dec 2018) appeared in the week ending 30 June 2019 when the price hit $13,880.
The monthly time frame is most important because there is no strong resistance level left if BTC closes a candle above $14,000, a situation unlikely to happen without further consolidation.
In the most recent analysis on June 5, multiple order blocks and lines were highlighted as supports and resistances, including $9,000-10,000 as a resistance block. As soon as BTC closed above $10,000 on the weekly time frame, it ran past the next resistance at $11,500 and hit $13,880, another potential selling pressure highlighted in the analysis. The order block spanning $10,000-9,000 will act as support now, if BTC drops there.
The following is an updated version of Cryptoriate’s universal BTC chart where order blocks previously highlighted as resistances have turned into support. As usual, greens are the areas where buyers will be present to scoop up BTC and reds highlight where BTC could face selling pressure.
BTC needs to breathe after the almost 400% rise in value from the lows of $3,100 in Dec 2018. There was no real consolidation in the price action between $5,000 and $14,000. The current range between $14,000 and $10,000 could be healthy for the Bitcoin market as a speculative asset and is much needed than ever. The most important factor is to identify and observe critical support levels. There is a range of factors making it difficult to speculate on the exact floor of this correction.
Conclusion:
BTC is consolidating at this stage. The depth of the correction is difficult to ascertain and could be as low as $9,000. The most important level to observe is the order block between $10,000-9,000. Altcoins are continuously losing value against BTC so be cautious buying them at this stage.
Disclaimer: This article is not intended as an investment advice and published for educational purposes only. BTC markets are highly volatile and risky in nature. DYOR before making any investment decision rather than listening to a stranger over the Internet.
