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Nick Leeson
Mar 11, 2020
by Nick Leeson

Bitcoin sell-off might continue for more than two weeks; local bottom at $7,000

Bitcoin
Even the cryptocurrency markets felt the Oil markets' shockwaves. The king coin took a tumble from $9,000 and the bottom is still yet to be decided. At the time of writing, the price was at $7,776 with a market cap of $143 billion.

The 24-hour trading volume stayed at $48 billion, just below $50 billion levels.

  • Even with the daily candles showing elaborate red candles, the weekly chart looks more bearish with the third consecutive candle opening red.

  • With less than 24 hours into this week, the price has already dropped by 3.5% and more might be on its way.

  • The absolute bottom on this time frame looks to be at $7,000 (give or take $500).

    • One Week Bitcoin Chart

    Source: Trading View.

    The one-week chart showed a bearish future for Bitcoin, at least for two weeks and all of this is dependent on Bitcoin's $7,575 support level. As seen above, the weekly chart showed three important support levels, one of which has already been breached.

    The breached level is $8,410, which is followed by $7,575 and $7,029. Since level 1 is breached, the next level is $7,575, a level tested by 10 weekly candles, hence making it the most important level so far. A dip under this level would be more than bad for the bulls.

    Further, this could trigger liquidations that could easily surpass yesterday's $206 million liquidations.

    Additionally, the price of Bitcoin has also dipped below the 20 weeks moving average (bright blue), hence, the bullish outlook for Bitcoin. Moreover, Bitcoin has also exhibited a pennant formation extending all the way back to December 2018.

    With this in mind, the price recently hit the upper trend line ($10,500) and is trending down towards the bottom line of the pennant. This is the reason for the extension of this sell-off for more than a week.

    Assuming that this sell-off continues, the price will push past $7,575 and hit the last level of support at $7,029, which has all the conditions to be a local bottom. However, there might be wicks penetrating this level and pushing further down. The only level beyond $7,029 would be at $6,400, where huge support has built up due to BTC's movement from November 2019 to December 2019.

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      Bitcoin sell-off might continue for more than two weeks; local bottom at $7,000
      Nick Leeson
      Nick Leeson is an avid trader and cryptocurrency enthusiast. Introduced to cryptocurrencies in early 2016 by a misclick on a YouTube video, Leeson has grown increasingly fascinated by them. He owns cryptocurrencies to trade and complete his goals of growing his accounts from scratch. Leeson's favourite cryptocurrencies include a lot of mid-cap altcoin projects that have the potential to actually disrupt the future. Any and all technical analysis/price prediction by Leeson is not a financial and/or investment advice of any sort.

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