Bitcoin Price Analysis: Bitcoin Tests Boundary Support as Demand Weakens | 코인긱스

Bitcoin Price Analysis: Bitcoin Tests Boundary Support as Demand Weakens

0

Bitcoin Price Analysis

Following last Friday’s drop, bitcoin has found itself coiled, once again, at the bottom of the range it established back in December. With the current market unable to close a new high, the market finds itself in a precarious position:

Figure_1.png

Figure 1: BTC-USD, Daily Candles, Range Support Test

The blue support level shown above illustrates the boundary of the multi-week range bitcoin has been bound by. At the time of this article, the market is testing the support level but has yet to close and continue below. We did see a temporary close below the support level, but there was a very short-lived rally on low volume shortly after popping the fresh low.

Figure_2 (6).png

Figure 2: BTC-USD, Daily Candles, Secondary Support Level

Just below our immediate support level exists a secondary support level (shown in red) established by a market pivot a few weeks ago. It’s not entirely surprising that the drop inspired some eager bulls. It is still too early to tell, but the temporary support level doesn’t appear to be inspiring much demand. The price spread is low, the volume is low, and the rally was immediately stifled on modest volume. As mentioned in our previous analysis, this is kind of a no-man's-land due to the market indecision within this range.

Figure_3 (5).png

Figure 3: BTC-USD, Daily Candles, Upper and Lower Bound of Current Range

The figure above shows the overhanging resistance (shown in blue and red) that rejected the bullish attempts to break out. We can clearly see that the daily candles at the top of the range closed lower and lower, ultimately being rejected with high volume and high price spread.

Similarly, the market has seen lower and lower closes at the bottom of the range with lower reactionary volume and tighter spread. This sort of market behavior is indicative of high supply presence combined with relatively weak and waning demand.

Currently, we need to see if the market breaks and closes below the current low. If we manage to close below the current level, we can expect to see a test of the next support level in the low $3,000s. However, if we manage to exhaust the bears at this level, we can fully expect to see a test of the upper boundary of the range once again.

We are firmly bound in this price range, and a breakout of the range in either direction will likely yield a strong continuation in the direction of the breakout. As always, we must wait to see where the daily candle closes, but for the time being, the current market seems to be leaning toward a test of the lower support.

Summary:

  1. For the last week, bitcoin has been pretty tightly coiled in a relatively narrow range.
  2. We closed a lower low on the daily candles but have yet to break through support.
  3. The currently price level is bordering on the no-man’s-land of the no-trade zone inside the range. If we manage to close below the current support level, we can expect to see a test of the low $3,000s. If not, we can most likely expect to retest the upper boundary of the range in the low $4,000s.

Trading and investing in digital assets like bitcoin is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTC Media related sites do not necessarily reflect the opinion of BTC Media and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.

This article originally appeared on Bitcoin Magazine.

source : bitcoinmagazine.com

https://bitcoinmagazine.com/articles/bitcoin-price-analysis-bitcoin-tests-boundary-support-demand-weakens/

 

‘에이코인(ACOIN)” 은 전 세계 오프라인 금거래 시장에서 금의 안전한 거래를 위해 사용하는 프로토콜 암호화폐이며, 코인월드 에이코인(ACO) 전용마켓 오픈 예정
한미중일 4개국 합자투자로 탄생한 코인월드, ‘에이코인'(ACOIN) 국내 최초 상장 협의중으로 4/16 사전 예약 실시
Coin world, ACOIN listing Discussion
Cryptocurrency exchange coin world, advance booking on next 16th

No comments

룩셈부르크 금융감독원, 암호화폐·ICO 투자 경고

룩셈부르크 금융감독원(CSSF)이 암호화폐 및 암호화폐공개(ICO) 투자에 대한 위험성을 경고하고 나섰다. 17일(현지시간) 룩셈부르크 금융감독원은 공식 발간한 보고서를 통해 “어떤 중앙은행의 지원도 받지 않고, 극심한 가격 유동성을 ...