Bitcoin (BTC) is currently is trading at around $9,500. After a formation of a double top and bearish engulfing pattern, we see a steep downfall. The price has the broken the support level of $10,800, turning it into resistance and support is at $8820. It is suggested not to take any long position at this price and to wait for the price to settle around $8,820.
According to Dow Theory, the price is in the panic phase. The digital coin usually ends up being oversold and provides good buying opportunity after the price settles down. The panic phase is followed by accumulation phase which marks the beginning of an uptrend.
The price is moving between the channels with the lower channel limit acting as support, while the momentum is also turning negative. This indicated an increasing volatility. It is suggested not to take any long positions at this price.
When taking 9 period moving averages (blue) with 21 period moving averages (red), a bearish crossover is seen with the price moving below 9 and 21 period moving average. Risk avoiders can wait for the Bitcoin price to close above the moving average as it indicates positive momentum.
Bitcoin (BTC) is currently is trading at approximately $9,500. Resistance is at $10,800 and support is at $8,820. It is suggested not to take any long position at this price and wait for it to settle down at around $8,820.
Overall, the long-term trend is positive but the short-term trend appears negative; however, long term investors can use this opportunity for buying, providing that they buy it around support. Swing trading can be done using the above-mentioned levels. Long-term target is at $12,400.