One difference between an everyday market and a bitcoin market is that if in an everyday market there is a $300 drop its big news and calls for a problem. However, the situation is a bit different when it comes to the bitcoin ecosystem.
The digital currency sky-rocketed over 39% against the U.S. Dollar to gradually and at long last establish 8511-fiat as its new weekly high. The positive is due to the serious sellers who have made the decision to be done with the market once and for all, leaving behind the holders and intraday players to buy the token at a much lower and cheaper rate.
So, is the drop any serious in near-term? Or is there going to be a bounce back towards 8500-fiat?
According to the 15-minute BitFinex chart, the BTC/USD is in place with an ascending trend line (indicated in purple) with support near 8161-fiat. The pair has slipped below its 50 and 100-H SMA (in blues) following the latest bearish correction but manages a strong foothold above its 200H SMA (in orange), also coinciding with the current Fibonacci support zone at 23.6% level (~$8,062).
There is a need to bring about a break strong support levels in order to establish a near-term bearish bias using the good old price action. At the start, a strong support lies near 8161-fiat which, if tampered with or messed around with, could lead the price to test 200H MA as the next immediate support. At the same time, any related with drawl from the support levels that were mentioned before will bring Bitcoin price to the brash bullish area.
There is a clear bias conflict.
As per the intraday analysis, the BTC/USD pair is now within the range which was pre-determinde by 8161-fiat as interim support, and 8511-fiat as interim resistance. The price is currently consolidating within this well-spaced range, which gives us the ability to begin with our intrarange strategy.