Bitcoin’s price spiked from a low of $3,480 to $3,700. It’s currently trading around $3,670 on Coinbase. We know $3,600 was acting as a strong support before prices dropped 2 days ago. Often when a support is broken, it starts acting as resistance. In this case, when price spiked, $3,600 did not act as resistance. This gives bulls some hope for a larger rally. Let’s now see if $3,600 starts acting as support again.
This latest rise in price also came with a drop in long positions. In other words, traders to profit. This is a healthy sign.
Unfortunately, overall daily volume remains low at around $5.4 Billion.
Looking at the daily chart, we can see the 8 and 21 day EMA are converging with the 50 day MA. This is providing a lot of resistance around the $3,700 level.
In today’s video analysis I discuss, where price may be heading next, traps to avoid, possible entry points and so much more. I hope you find it helpful.
I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading!
Disclaimer: I am NOT a financial advisor and this is NOT financial advice. Please always do your own research before investing.