BTCUSDT | Bitcoin has crashed but is the growth phase finished?

4 сент. 2020 г.

Overview
Bitcoin broke up through $12 000 but is now crashing. Gold set a new all-time high but has since pulled back. The S&P 500 keeps on setting high after high. Still, all of these assets have one thing in common: they’re all at risk for a sizable correction, primarily due to the dark cloud hanging over the coming United States 2020 Presidential election. However such explanation can describe short-term effect on Bitcoin's price action but what about long-term perspective?

Fractals
Bitcoin global ATH $19 798 was reached on December 17th in 2017. Afterwards the whole cryptocurrency industry entered a consolidation phase decreasing until April 2nd in 2018 when a new growth stage started. After 3 months of ascending trend Bitcoin made a local peak of $13 970 on June 26th where consolidation started again making a Fractal pattern.

Why are these Fractal patterns so important now?
Bitcoin price action tried to consolidate at previously broken resistance levels to stop crashing during the first Fractal in 2018. Retrospectively we can see it failed after several attempts reaching major support which was also rejected thus it resulted in a dramatic crash to base level of $3 156. Currently we see the very similar situation:
- Local support of $11 400 was broken
- Previously broken resistance level of $10 400 level is being tested but has low probability to withstand
Based on the Pitchfork and trend analysis we see a high probability of breaking down the level and further retest of major support level. Which will confirm repeating Fractal pattern and will signal for descending trend

Conclusion
Bitcoin is at decisive moment. The long-term price action development depends on whether BTC succeed to consolidate above $10 400 level or not. Most traders from SkyRock Signals think Bitcoin will break the level within next days because of bearish fundamental background, negative results of trend and technical indicators analyses. The scenario will bring the leading cryptocurrency to Major support near with $8 893 level. On a contrast with the first Fractal this level is close to fundamental production value which increase chances of bouncing back. However it is hard to accurately forecast what will happen when Bitcoin touches major Support because Fractal patterns do not guarantee retrospective will happen again. The most important now is to set tight risk management settings to your cryptocurrency assets positions until decisive moment is passed

Stay safe and confident. We will update this trading idea so stay tuned

Best regard,
SkyRock Signals team

5 сент. 2020 г.

Сделка активна

The price action has broke down through $10 400 support level. The analysis is in power now. We see a high probability of retesting Major support near with $8 893 level in the middle time frame. But what should we do in the short-term?

Support this idea with your likes and comments please! We will share current short-term risk management settings and actions-to-do at 9k level ranges. Once there will be 15 likes we will make a new update with trading recommendations