Wednesday, September 25, 2019
The bottom of the triangle has been broken! As expected it led to a massive drawback.
Current support/resistance: $8'000/$9'000
An impressive move happened Yesterday. After almost three months of constriction within the triangle formation, we started to reach the end of it and a big move was expected. The first support to be broken was around $9'400 and then everything was cut like butter. Interestingly, three days ago the Bitcoin hash rate, which relates to the number of blocks computed by the miners - a sign of security, dropped massively (more than 30%). Some have interpreted this as a precursor sign for the breakout that followed and were probably right. It would not be surprising if the $7'000 level was reached in the short term but further drop would require a very strong selling pressure and would probably lead us to the $5'000 level.
The technical indicators were signaling a bearish trend for a few days already. The MACD lines started to diverge in red 5 days ago and the 20 days moving average was crossed 8 days ago. The RSI is now completely in the oversold region which has not been the case since November 2018.
The analysis is based on the latest close price (00:00 UTC time, daily basis)
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