Bitcoin Going Bearish Again

Well, Bitcoin was stable for almost 2-3 days in row and inevitably it had to choose a direction to move. Since it rejected $6800 solid resistance level thrice in this week, it was somewhat imminent that Bitcoin can fall again. Yesterday, BTC was trading around $6720 with a very low volume and since then it started falling like crazy. 

Currently, BTC is trading at $6365 with a market dominance of 43.3% and market capitalisation of $109.4 Billion. Although, the total market capitalisation has fallen by $20 Billion in last 24 hours because of Bitcoin's 6% drop. 

Now, Is Bitcoin going really Bearish again?

Not exactly. There's a fair chance that it can be a fake out. Let's explain in the chart below:

Bitcoin has rejected $6800 thrice in last one week. That means, it was a solid resistance level and Bitcoin needed huge volume to break it. BTC tried to break that level thrice but that amount of volume was missing and that's why Bitcoin rejected that level thrice. 

After that, Bitcoin was trading sideways with very low volume and breakout has to happen. So, BTC started falling and currently it has fallen by almost 6%.  But if you look at that volume of current dump, it is very low and doesn't guarantee the fall we're watching right now. There's a high chances that it might be a fake out. Moreover, BTC has started retracing from 0.50 Fib Level which is a good sign. 

From current level, we might see a reversal but still it is uncertain. We need a 1 hour candle at least with a higher low to confirm the retrace. 

So, if you are to enter a trade then wait for sometime and use stop-loss in order to save yourself from potential loss.

Thanks for reading ...!!

Image Credit