BTC/USD slowly heading towards 61.8% retracement level, bulls wait on the sideline
January 22, 2018 (Investorideas.com Newswire) The price BTC/USD surged significantly higher in the global market and traded at record high price at 19515.3 on 16th December 2017. From that level, the sellers managed to take control of this market and pushed the pair significantly lower in the global market. For six consecutive days, the price sharply fell in the global market and it eventually found some support near 50% bullish Fibonacci retracement level drawn from the low of 15th September 2017 to the high of 16 December 2017.The bulls managed to push the price higher towards the 172610.0 mark before the sellers managed to push the price further lower. From that level, the pair breached the 50% bullish support level at 11416.5 and formed a nice bullish morning star pattern near the 61.8% retracement level. Most of the professional price action traders have already executed their long trades in favor of the long-term bullish trend with a tight stop below the low of 17t January 2018.
BTC/USD daily chart analysis
From the above figure, you can clearly see that the sellers are trying to push the price of BTC/USD pair significantly lower in the global market. But in order to consider the establishment of a medium-term bearish trend we need to have a daily closing of the price below the critical support level at 9412.0.The majority of the conservative traders are waiting for a deeper decline in the price level to place long orders. Since the market is extremely volatile in nature some of the leading investors are setting pending buy orders in their mt4 platform to get the best possible entry price. If the price retest the 61.8 % retracement level we might see a decent bullish bounce which will ultimately lead this pair towards the minor resistance level at 12794.2.A daily closing of the price above that level will refuel the bitcoins bulls in the global market and eventually the pair is expected near the next critical resistance level at 17177.5.From that level, we might see some bearish retracement of the price towards the minor support level at 14000 where we might find some fresh long orders. In order to resume the current bullish trend, the BTC/USD must break above the critical resistance level at 19515.3.
On the downside, we now have 61.8% bullish retracement level and the bears must break below this level to turn the overall sentiment of the market from bullish to bearish. A daily closing of the price below the critical support level at 9454.5 will ultimately lead this pair towards the next minor support level at 8327.3Though this level is a minor support level but the ongoing demand of the BTC/USD will most likely to create extensive bullish sentiment in the global market. The expert traders will be looking for bullish price action confirmation signal near the critical support level at 9454.5 to execute long orders. A daily closing of the price below that level will ultimately lead this pair towards the major support level at 6000.
In the weekly chart, we have a nice bullish pin bar formed right near the major support level at 9400 markets. As long as the critical support level at 9400 mark holds any bearish retracement of the price will be an excellent opportunity to buy the bitcoins. Moreover, the U.S economy is not doing well in recent days and the extreme level of negative U.S consumer sentiment is most likely to push the price of bitcoin significantly higher from this level. Though we have clear long trade setup both in the daily and weekly chart the investors should be extremely cautious about risk management factors due to the nature of its highly volatile price movement.
An economist, Forex trader and Forex writer, I have a keen eye for spotting international trading trends, particularly since shadowing my mother’s work over the past 20 years with one of the largest fashion groups.
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