Just a quick update following yesterday’s price analysis: Bitcoin had just broken the significant $6250 support level. In the following chart, we can notice the wedge that was broken down. The break-down carried out an ugly red candle of about $150 to a current low of $6150 (Bitstamp).
We’ve mentioned this several times before – The global markets bearish sentiment, along with the fact that there is no crypto hype right now, makes the perfect conditions for the crypto markets to follow the Nasdaq in its red.
- The $6250 key-level is broken. The next major support level lies $6100, ~$6050 (the BTC daily chart support) and $6000.
- If the above support doesn’t hold, 2018 yearly low at $5700 – $5800 will soon be up for another test. The more times support areas are being tested, the higher the chance for a breakdown.
- A negative trading volume of sellers is starting to develop on the hourly chart.
- From the bull side, there is an option to re-test $6250 before continuing down, to mark it as a support-turned resistance level. Stochastic RSI indicator supports that option (as the market is oversold).
- RSI on the 4-hours chart has broken significant support level at 30 level. However, by looking at the daily BTC chart, RSI is at the critical level of support.
- BitFinex has now 19.7K BTC open short positions. This is the lowest level since the beginning of August. I refer it to the low volumes and the decrease in Bitfinex popularity.
BTC/USD BitStamp 4 Hours chart
BTC/USD BitStamp 1 Day chart
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Source: Crypto Potato