Bitcoin [BTC] price charts exhibit a severe downtrend characterized as a ‘falling knife’ in trading terms. If one tried to catch the knife yesterday, the trader surely got hurt. The price broke below the low previous swing low at $9200, threatening a revival of the bear trend.
The bear action at the moment is quite strong breaking below the 200-Day Moving Average at $8773 (blue line). The price of Bitcoin [BTC] at 3: 00 hours UTC on 27th February is $8668.
Nevertheless, since it hasn’t been long since the market turned bullish, a drop of 7% from the bottom of channel should provide ideal support to price.
Contrary to the bullish case, in a bear market price ‘log lower lows and lower highs’. The break below $9200 was the first level of invalidation for bulls. The second level of invalidation is approaching quickly around $8200. A break-down of these levels would flips sentiments towards the bears.
Top trader and analyst, Don Alt who was right about shorting levels about $10,000 perceives that ‘the bulls have been bullied enough.’ However, is still hedged short and fails to see a bullish market structure.
The targets of his high time frame range and market analysis extends to lows around $7,800-$8,000, with potential downside to $5k levels in the long term.
Now or Never?
On the four-hour chart, another prominent trader, Sawcruhteez notes that it’s now or never! According to him, the TD sequential indicator creates possibility of a bounce at 9, however, the death cross between the 50 and 200 period EMA is looming for blood. He tweeted,
Looking for a bounce off the 4h red 9. At the moment it would appear to setup a pull back and into a death cross. If that materializes then I will be exiting my longs. $BTC
At the moment, looks like the 9 did not yield an upside, as the death cross has come close of realization.
Do you think that an upside is still possible? Please share your analysis with us.
from Coingape https://coingape.com/bitcoin-btc-approaches-critical-bull-levels-at-8500/
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