After several days of trying to keep support at $11,200, the bears managed to win the battle, dragging the price of Bitcoin down to $9,960 in a continuous drop.
After getting demand at a support level of $10,157, BTC has managed to breathe a bit, and although it’s likely to make a major correction, the risk of a continued decline is still there.
Technical analysis of the price of Bitcoin. Medium Term Trend
From the weekly BTC vs USDT chart, we can see how the bulls continue to maintain control of the trend in the medium term.
The 8 week EMA and 18 week SMA moving averages are crossed upwards following this trend.
It is still possible that the drop in the Bitcoin price that we are witnessing is a correction of the medium term direction, and that the above mentioned moving averages function as dynamic supports.
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Short term trend
In the daily time frame, a clear downward trend is observed in the short term, recently reaffirmed with the break of the support at $11,200.
The recent fall went unchecked towards a low of $9,960, and did not make a reversal to test the broken support as is usually the case, and this is likely to happen soon.
The next daily support is at $9,537. Below is the $9,170 to $8,900 demand zone that intersects with the 200-day SMA.
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Currently the time frame where the behavior of the BTC can be observed in detail is 4 hours.
This is where the demand zone that stopped the recent fall in the price of Bitcoin is clearly identified, and which made it immediately fall back to a resistance of $10,565.
A valid retracement of the short term trend will probably take the Crypto Cash price towards $11,200, a level that should be tested before continuing to fall.
At the moment, with a medium term uptrend, it is not very convenient to position oneself in favor of very long falls.
For those of us who maintain a bullish vision no matter how much the price corrects, let’s hope that what we are witnessing does not last too long; for now, the best that can happen is the beginning of a lateral period.
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