Fear grips the market as Bitcoin falls below support.  Is there any hope for a rebound?  Covered: Enter the Selling Dragon Bitcoin Falls: How Low Can It Go? The Silver Lining What To Look For Next Fear Grips the Market   In the past 24 hours, Bitcoin (ticker symbol: BTC)  attempted to rally off of strong support at […] The post Epic Battle Between Bears And Bulls Heats Up As Bitcoin Hourly Candles Close Below Support appeared first on CryptosRus.

Epic Battle Between Bears And Bulls Heats Up As Bitcoin Hourly Candles Close Below Support

Fear grips the market as Bitcoin falls below support.  Is there any hope for a rebound? 

Covered:

  • Enter the Selling Dragon
  • Bitcoin Falls: How Low Can It Go?
  • The Silver Lining
  • What To Look For Next

Fear Grips the Market  

In the past 24 hours, Bitcoin (ticker symbol: BTC)  attempted to rally off of strong support at $58,000.  That rally failed to gain momentum, however, and strong selling pressure resumed this morning causing hourly candles to begin closing below that level on high volume. 

At the time of writing, BTC is trading in the $57,000 USD range and trending down. And, it appears the number one cryptocurrency by market cap is bringing the entire crypto market down with it.  

How Low Can It Go?  

As hourly, and potentially four hourly, candles begin to close below support, the probability of further downside becomes more likely.  If this selling pressure continues to push the price down, the next area of interest for support to come in is right around $53,000. 

This represents a peak the Bitcoin price came to on September 7th (see the arrow on the left in the above image), which is currently sitting in perfect confluence with the 100 Day Simple Moving Average (green line). 

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There were also several touch points at this level during the range Bitcoin bounced around in from February to May. If $53,000 does not hold, the nice even number of $50,000 will most likely come into play.

Bitcoin Falls: The Silver Lining

What’s most important to remember at this point is that we have yet to see a daily close below our $58,000 support, with plenty of time for the Bulls to step in and push the price back up. There is still the possibility that this move will end up being a wick down on the daily chart. A daily close above $58,000 would be very bullish.  

When we zoom into the hourly and four hourly time frames, there is a case to be made that Bitcoin is getting ready to bounce. If anything, it currently seems to be doing just that, with a green candle trying to print on the hourly. 

More importantly, this move down does not seem to have as much momentum as the previous push to the downside just days ago. This can be seen with a higher low on the RSI (Relative Strength Index), and a lower low forming on the price chart.  This discrepancy is known as Bullish Divergence. 

A divergence is now showing up on both the one-hour, and four-hour charts. Furthermore, we have seen a dip into oversold territory on both time frames. Historically speaking, Bitcoin does not tend to stay oversold for very long. 

 

Bitcoin Falls: What To Look For Next

These next few hours mark a critical decision point for Bitcoin.

The biggest risk at the moment is that $58,000 could potentially flip from support to resistance.  If the price can quickly rally back above that level, then the probability of higher prices becomes more likely.  If we see a rejection at or below $58,000, then further downside should be expected.   

For now, only one thing is for certain: there is an epic battle playing out between the Bears and the Bulls, with the fate of the entire crypto market hanging in the balance.    

The post Epic Battle Between Bears And Bulls Heats Up As Bitcoin Hourly Candles Close Below Support appeared first on CryptosRus.