Market Analysis - BTC
market saw significant and swift losses in the last 24 hours as several support levels were consecutively broken in the wake of negative industry news this week.
Bullish market sentiment is at a low and we will have to look at these two possible scenarios:
1️⃣Will there be a further price crash while bullish market sentiment remains low? 2️⃣Will the support level of 17,500 seen last in June support the current price?
According to the technical analysis, the RSI is below 50 and has not reached the oversold level, so there is still room for the price to fall. For the daily chart, 17,500 is the final support level. If it is broken, Bitcoin may fall further to around 15,000.
19,800 is the key resistance level. If the resistance level is reached, we can take that as an indication of market recovery from the sudden shock caused by FTX news this week.
‼️Support level 17,500 ‼️Resistance level 19,800
As the world digests the FTX crisis and Binance's involvement after, spot trading on the biggest crypto exchange in the world has also been greatly affected.
‼️If we compare the lower spot price point for BTC on Coinbase and Binance, we can see that the former saw a low of 17,500, which is significantly higher than Binance's 17,133. Other available trading assets on Binance did not see an uptick in trading volume either,
While USDT seems to be suffering from insufficient liquidity 👆🏻 After the price falls below 18,600, all eyes are on the critical support point of 17,500. The RSI has fallen to an oversold level without a notable rebound in price action at all.
Instead, prices are hovering around the 18,600 level as the market weakens. Therefore, if the price has digested the oversold level of around 18,600, traders may do well to avoid going into long trades during this time.
🚨Trading signal update:
The 4H chart falls below 20,800, short Bitcoin, filled, SL 21,200, TP 19,600, TP hit If the price still hovers around 18,600 (18,400-18,800) at 16:00 (GMT+8), then short Bitcoin, stop-loss 19,600 and stop-gain 16,810This post is based on this twitter thread.