News Analysis
Greenspan, a senior analysist at eToro posted a series of tweets about the role of Asian countries, especially Japan and Korea in BTC price surge. Rich people there buy cryptocurrency because they are afraid of devaluation of their national currency. When the price increased to $8,000, the trading volume in Asia grew rapidly, while in Europe and some other countries, the increase in volume was almost unnoticeable.
Volume Analysis
Comparing to the volume when the price was quite stable around $8,150-8,200 the trading volume now keeps increasing. Big investors are closing their positions.
Support/Resistance Level Analysis
Timeframe: 1H
Support at $7,500 (green line) was successfully tested today. Resistance level is formed at around $7,700 (red line). After the rate bounced off the support, it moved to this level again. If the support works, the double bottom pattern will be formed and there will be a powerful impulse for the price to go up.
Timeframe: 1D
The rate approaches support at $7,500. Strong support is formed at $8,450. But level at $8,200 can also stop the price from going higher.
Indicator Analysis
Timeframe: 1H
Bollinger Bands is wide, the rate is moving in its bottom half.
The price is below the Ichimoku cloud.
RSI retreated from the oversold zone.
These indicators demonstrate bearish trend of the market.
Timeframe: 1D
On daily timeframes symmetrical triangle is being formed (shown on the graph with gray lines)
Bollinger Bands got wider, the rate is moving below middle line.
RSI is moving near 50% mark.
Such results indicate that further decrease of price is possible.
Action Plan
The situation on the market is not clear. Even though the risk of going down to $7,300, support at $7,500 looks strong. So, we expect a powerful increase. If the support at $7,500 works, it is time to open positions.
Greenspan, a senior analysist at eToro posted a series of tweets about the role of Asian countries, especially Japan and Korea in BTC price surge. Rich people there buy cryptocurrency because they are afraid of devaluation of their national currency. When the price increased to $8,000, the trading volume in Asia grew rapidly, while in Europe and some other countries, the increase in volume was almost unnoticeable.
Volume Analysis
Comparing to the volume when the price was quite stable around $8,150-8,200 the trading volume now keeps increasing. Big investors are closing their positions.
Support/Resistance Level Analysis
Timeframe: 1H
Support at $7,500 (green line) was successfully tested today. Resistance level is formed at around $7,700 (red line). After the rate bounced off the support, it moved to this level again. If the support works, the double bottom pattern will be formed and there will be a powerful impulse for the price to go up.
Timeframe: 1D
The rate approaches support at $7,500. Strong support is formed at $8,450. But level at $8,200 can also stop the price from going higher.
Indicator Analysis
Timeframe: 1H
Bollinger Bands is wide, the rate is moving in its bottom half.
The price is below the Ichimoku cloud.
RSI retreated from the oversold zone.
These indicators demonstrate bearish trend of the market.
Timeframe: 1D
On daily timeframes symmetrical triangle is being formed (shown on the graph with gray lines)
Bollinger Bands got wider, the rate is moving below middle line.
RSI is moving near 50% mark.
Such results indicate that further decrease of price is possible.
Action Plan
The situation on the market is not clear. Even though the risk of going down to $7,300, support at $7,500 looks strong. So, we expect a powerful increase. If the support at $7,500 works, it is time to open positions.