Hello all, welcome to the technical analysis of bitcoin especially after the huge drop on 1 day trade session. let's enjoy this!
Today is a very difficult day for bitcoin, which we can see that the price has dropped nearly 30% comparing to the open price. With this drop, it has invalidated every long bias even for short term or longer term. In this technical analysis of bitcoin, I want to use the extra indicator that I usually uses whenever the price has a huge drop like this which is the 1000 MA on the daily chart. We can see that this 1000 MA has acted as a strong dynamic support since the first time it occured. The last time the price of bitcoin breached this dynamic support was at November 2018 - March 2019 , when we know that there was a consolidation moves at that time. And today, officially the price has breached again this dynamic support after a long time ago.
And looking at the historical performance of the price when it consolidated when it had breached this dynamic line, I'll expect a similar consolidation pattern too, beside the price is still trending around the strong support zone of the golden pocket region. However, breaching the 1000 moving average as a long period of dynamic support level is not looking good at all, I will look for further confirmation of the price to identify my bias later when the price has less volatility in the future. Jumping in the market is not a wise decision for now.
Today is a very difficult day for bitcoin, which we can see that the price has dropped nearly 30% comparing to the open price. With this drop, it has invalidated every long bias even for short term or longer term. In this technical analysis of bitcoin, I want to use the extra indicator that I usually uses whenever the price has a huge drop like this which is the 1000 MA on the daily chart. We can see that this 1000 MA has acted as a strong dynamic support since the first time it occured. The last time the price of bitcoin breached this dynamic support was at November 2018 - March 2019 , when we know that there was a consolidation moves at that time. And today, officially the price has breached again this dynamic support after a long time ago.
And looking at the historical performance of the price when it consolidated when it had breached this dynamic line, I'll expect a similar consolidation pattern too, beside the price is still trending around the strong support zone of the golden pocket region. However, breaching the 1000 moving average as a long period of dynamic support level is not looking good at all, I will look for further confirmation of the price to identify my bias later when the price has less volatility in the future. Jumping in the market is not a wise decision for now.
