ZuluTrade Blog

Bitcoin is reaching a major support area!

Market View | Tuesday, February 6, 2018 8:52 AM GMT

Bitcoin is in freefall after hitting all times high some weeks ago. There were some intraday bounces however all supports were eventually violated to the downside. Reviewing the daily timeframe, BTCUSD is forming a falling channel by using 1234 method. It is very close to a major long-term support too. The zone $5600 - $4800 may offer another potential bounce to the upside. However, traders should be highly cautious because there is a strong bearish momentum all over the market. Naturally, there more probabilities to the downside as the bias is negative.   

Reviewing the 15m TF, BTCUSD is breaking a falling ST channel to the upside. This may drive the price near to 200 SMA. However, it needs to verify the zone $6300 successfully. If not, we may see further selling pressure.



(EMA = Exponential Moving Average, SMA= Simple Moving Average
5EMA=Blue, 21EMA=White, 200SMA= Yellow)

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