Quick Bitcoin price forecast after the carnage on the markets in the last week, so WHY IS CRYPTO CRASHING? Is it crashing? Most of the markets in the world are having a bit of a hard time right now, including stocks, emerging markets and of course crypto and a few more.
Crypto being down about 70% or more since December last year, is quite normal, like most old school holders would tell you. Lets take a look at the BTCUSD 1 Day chart to asses the damage.
We can clearly see that jumbo bearish candle formation brought on by panic selling in the market, there was great volume on the market and this is a very good sign. On the longer term we can see that there is some serious bearish momentum and the buyers will have to keep on buying to even out at these levels.
On the shorter term $6400 has been acting as a strong support, and I will look to this level to signal a break to the downside, on the flip side i will monitor $6500 – $6600 as the current shorter term resistance.
Should the first level of support fail, I would expect prices to test lower support zones at, $6200 – $6000 – $5880. Each of these levels represent a potential point in which we can short the market, however please note this is also likely where support could kick to produce a bounce. Most trades here on margin would be considered higher risk trading.
Should our support level hold, i will look to the resistance zone to signal the next break to the topside. Resistance levels are as follows, $6650 – $7000 – $7400.
Safe trades. Feel free to discuss any trade ideas with us on Discord.