Hi traders.
How are you doing thiis evening?
I am not good as I just analyzed bitcoin. The analysis of bitcoin looks bad.
Fundamental Analysis:
It has been on continuous downtrend from a past few days. And my analysis show that it may continue its downtrend for another 5-6 days.
There is no volume in the market. Neglecting some healthy news like CME expiration on 26th January and the confirmation of no ban on Crptocurrencies from South Korea, no volume came in the market and we see bitcoin moving as dead.
We need some very healthy news due to which volume should increase and then we might see price racing towards moon.
Technical Analysis:
The technical analysis of bitcoin shows that it might come down to 5500-6000 Range. And there are many reasons to support it as I will do in this blog. Previously I told you that bitcoin might test 7500 zone 4 days back and it just bounced from 7500. You can read my that post here:
https://steemit.com/bitcoin/@mazharkazmi/bitcoin-might-drop-as-low-as-usd7500-fundamental-and-technical-reasons
Chart:
The technical analysis chart of bitcoin looks like this:
Current Scenario:
Current scenario of bitcoin is bearish as it has been from past few days and will continue its bearish mood. Reasons of that are presented below:
Break Of Falling Wedge:
Bitcoin was making a falling wedge pattern. This was the last hope of bitcoin pump. But bitcoin broke it in opposite way i.e. in the downwards direction which is a strong bearish sign.
Break of major trendline:
Bitcoin broke a major trendline. Let me show you:
Now bitcoin must gain support from lower trendline which is at 5500-6000 dollars.
Current Levels to Look For:
Bitcoin's Current levels to look for are 7500 and 6900. THese are two potential supports from where we might see small bounces.
Strong support:
Strong support is present in the green rectangle region from where btc might retrace. This region is at 5500-6000 US Dollars.
So that was the technical and fundamental analysis of bitcoin.
Note: This is just my analysis and it can fail as sometimes price obeys the analysis and sometimes it doesnt.
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