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, he 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. $
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.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com