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Bitcoin Plunged $1800 Following a Violent Correction. Are The Bulls Still Around? BTC Price Analysis

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Following a crazy rally, it finally happened: Bitcoin plunged $1800 in a large red candle, driving down the price to a low of $6180 on Bitstamp.

As written here before, we had a strong clue on what was going to happen:“Add to that a recent significant drop in the short positions caused a daily 38% decrease, as the short positions are now at their lowest point over the past year. The number currently stands around 17K BTC open short positions. As a reminder, a situation where shorts are at their lower levels and longs at their high create the perfect settings for a long-squeeze.”

Does this mean Bitcoin is bearish again? It’s early to say so. So far, the anticipated correction is very aggressive but looks healthy and aggressive as this was on the way up. Besides, we mentioned here the importance of the $5700 – $6000, which was what held the market during the bear year of 2018. As long as this area hadn’t broken down, I would say that the correction is violent, but healthy.

And last, Tone Vays was right!

Total Market Cap: $255 Billion

Bitcoin Market Cap: $142.5 Billion

BTC Dominance: 55.9%

Looking at the 1-day & 4-hour charts

– Support/Resistance:
Following the break-down of the mid-term descending trend line on the 4-hour chart, it didn’t take long, and the dump came across. As can be seen, the wick of the 4-hour candle had reached the longer-term ascending trend-line support, along with Fib level 78.6%.

As of now, Bitcoin is testing support at $7250 – $7300 (along with Fibonacci retracement level 38.2%). From below, the next significant support area lies at $7000. Further below is $6700 (along with Fib level 61.8%), $6400 and $6300.

From above, the next significant resistance is the current price area, while further support turned resistance level lies at $7600, $8000, $8200, and 2019 high at $8400.

– Trading Volume: The recent dump was followed by a massive amount of funds. It’s ok to have an ugly correction like this, but the next days will tell if the sellers had returned.

– Daily chart’s RSI: The RSI had also dropped sharply. As of now, it’s still in the bullish territory (63); however, there is always more room to go down.

– BitFinex open short positions: since yesterday, we hadn’t seen the opening of new short positions as the number increased just a little to 16.7K BTC open short positions. From the other side, and supporting the long-squeeze theory we mentioned, the open longs had sharply decreased by 10%.

BTC/USD BitStamp 4-Hour Chart

btc_may17_4h-min

BTC/USD BitStamp 1-Day Chart

btc_may17_d-min

Bitcoin

Bitcoin (BTC) Price Accelerating Losses Below $8K, $7.5K Very Likely

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  • Bitcoin price corrected higher, but it faced hurdles near $8,120 and $8,140 against the US Dollar.
  • The price is declining again and it could gain momentum below the $8,000 support.
  • There is a major bearish trend line forming with resistance near $8,240 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The price is likely to remain in a bearish zone unless the bulls push it above $8,120 and $8,240.

Bitcoin price is struggling to rebound above $8,100 against the US Dollar. Therefore, BTC is likely to resume its decline below $8,000 and $7,900 in the near term.

Bitcoin Price Analysis

Yesterday, there was a downside extension in bitcoin below the $8,000 support area against the US Dollar. BTC price traded to a new monthly low at $7,915 and settled below the 100 hourly simple moving average. Recently, there was an upside correction above the $8,000 level. Moreover, the price recovered above the $8,020 level, plus the 23.6% Fib retracement level of the last decline from the $8,386 high to $7,915 low.

However, the upward move was capped by the $8,100 and $8,120 resistance levels. Besides, the price failed to test the 50% Fib retracement level of the last decline from the $8,386 high to $7,915 low. As a result, there was a fresh decline below $8,020. The price is now accelerating declines below the $8,000 level. It even broke the last swing low at $7,915 and traded to a new monthly low near $7,850.

It seems like there was a strong bearish reaction below $8,000. The next key support is near the $7,800 level. If there are more downsides, bitcoin price could accelerate losses towards the $7,600 and $7,500 levels in the near term. An intermediate support is near the $7,720 level.

On the upside, the $8,000 and $8,020 levels are likely to act as hurdles for the bulls. The main resistance is near the $8,120 level and the 100 hourly simple moving average. Besides, there is a major bearish trend line forming with resistance near $8,240 on the hourly chart of the BTC/USD pair.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin is clearly under a lot of pressure below $8,120 and $8,000. As long as there is no close above $8,120 and $8,240, there are chances of more downsides. The main target for the bearish in the coming sessions could be near the $7,600 and $7,500 levels.

Technical indicators:

Hourly MACD – The MACD is gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is declining sharply and is well below the 40 level.

Major Support Levels – $7,800 followed by $7,500.

Major Resistance Levels – $8,020, $8,120 and $8,150.

Source:newsbtc

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Bitcoin

Bitcoin (BTC) Price Accelerating Losses Below $8K, $7.5K Very Likely

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  • Bitcoin price corrected higher, but it faced hurdles near $8,120 and $8,140 against the US Dollar.
  • The price is declining again and it could gain momentum below the $8,000 support.
  • There is a major bearish trend line forming with resistance near $8,240 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The price is likely to remain in a bearish zone unless the bulls push it above $8,120 and $8,240.

Bitcoin price is struggling to rebound above $8,100 against the US Dollar. Therefore, BTC is likely to resume its decline below $8,000 and $7,900 in the near term.

Bitcoin Price Analysis

Yesterday, there was a downside extension in bitcoin below the $8,000 support area against the US Dollar. BTC price traded to a new monthly low at $7,915 and settled below the 100 hourly simple moving average. Recently, there was an upside correction above the $8,000 level. Moreover, the price recovered above the $8,020 level, plus the 23.6% Fib retracement level of the last decline from the $8,386 high to $7,915 low.

However, the upward move was capped by the $8,100 and $8,120 resistance levels. Besides, the price failed to test the 50% Fib retracement level of the last decline from the $8,386 high to $7,915 low. As a result, there was a fresh decline below $8,020. The price is now accelerating declines below the $8,000 level. It even broke the last swing low at $7,915 and traded to a new monthly low near $7,850.

It seems like there was a strong bearish reaction below $8,000. The next key support is near the $7,800 level. If there are more downsides, bitcoin price could accelerate losses towards the $7,600 and $7,500 levels in the near term. An intermediate support is near the $7,720 level.

On the upside, the $8,000 and $8,020 levels are likely to act as hurdles for the bulls. The main resistance is near the $8,120 level and the 100 hourly simple moving average. Besides, there is a major bearish trend line forming with resistance near $8,240 on the hourly chart of the BTC/USD pair.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin is clearly under a lot of pressure below $8,120 and $8,000. As long as there is no close above $8,120 and $8,240, there are chances of more downsides. The main target for the bearish in the coming sessions could be near the $7,600 and $7,500 levels.

Hourly MACD – The MACD is gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is declining sharply and is well below the 40 level.

Major Support Levels – $7,800 followed by $7,500.

Major Resistance Levels – $8,020, $8,120 and $8,150.

Technical indicators:

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Bitcoin

Bitcoin And Crypto Market Cap Facing Hurdles: BCH, Litecoin, TRX, XLM Analysis

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  • The total crypto market cap corrected a few points, but it faced a strong resistance near $215.0B.
  • Bitcoin price is also correcting higher, but it is likely to struggle to clear the $8,200 resistance.
  • Litecoin (LTC) price is now facing resistance near the $55.50 and $56.50 levels.
  • BCH price is holding the main $215 support area and it is currently rebounding.
  • Tron (TRX) price is climbing higher and it is now placed nicely above the $0.0150 level.
  • Stellar (XLM) price is up more than 2% and it is moving towards the $0.0650 resistance.

The crypto market cap and bitcoin (BTC) are facing many hurdles on the upside. Ethereum (ETH), litecoin (LTC), ripple, BCH, tron (TRX), stellar (XLM) and other altcoins could struggle to climb higher.

Bitcoin Cash Price Analysis

BCH price corrected lower recently and tested the $215 support area against the US Dollar. The price is currently moving higher and is trading near the $220 level. On the upside, there is a major resistance near the $230 level, above which the price could recover towards the $240 level in the near term.

On the downside, if there is a bearish break below the $215 support, the price could decline towards the $205 and $200 support levels.

Litecoin (LTC), Tron (TRX) and Stellar (XLM) Price Analysis

Litecoin price managed to stay above the $51.50 and $50.00 support levels. LTC price is currently recovering and is trading above the $54.00 level. However, there are a few key hurdles near the $55.50 and $56.00 levels, above which the price could revisit the main $60.00 resistance area.

Tron price declined recently and tested the $0.0145 support area. TRX price remained well bid and recently started a nice upward move above the $0.0150 resistance area. The price is up more than 3% and it could continue to rise towards the $0.0155 resistance level in the near term.

Stellar price also declined recently and tested the $0.0600 support area. XLM price is now climbing higher and is trading above the $0.0625 resistance area. However, there is a major resistance near $0.0650, above which the price could continue to rise towards $0.0682 and $0.0695.

Bitcoin Crypto Market Altcoins ETH XRP EOS BNB TRX ADA LTC

Looking at the total cryptocurrency market cap 4-hours chart, there was a decent recovery from the $205.0B support area. However, the market cap struggled to clear a key resistance near the $215.0B level and the 100 SMA. Moreover, there is a connecting bearish trend line forming with resistance near $215.0B. Therefore, a clear break above the $215.0B resistance is needed for a nice rally in bitcoin, Ethereum, EOS, litecoin, ripple, XLM, BCH, BNB, TRX, ADA, XMR, and other altcoins in the coming sessions.

Source:newsbtc

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