ambcrypto.com
Bitcoin [BTC] experienced yet another pullback on the eve of June 4, with the highly touted resistance of $8,000, which was broken earlier last month, now being tested by the king coin. With Bitcoin currently hovering below the aforementioned level, a prominent analyst has dwelled on the possible support and resistance levels that could cause a struggle in the ensuing weeks.
CryptoCred, a cryptocurrency analyst stated that he was not interested in “no man’s land entries” and specified three levels of support that had to be tested for the Bitcoin bullish fight to continue. Opting to use the D3 levels as his “trusty guide,” Cred’s analysis’ biggest takeaway was the highlighted ceiling at $8,200, which had to be broken to confirm the departure of the correction bears.
His tweet read,
$BTC
Still using the D3 levels as my trusty guide for this market.
Broken resistance failing to flip to support is usually a sign of a (short-term) top.
Needs to reclaim $8200s or test one of the outlined support levels for me to buy. Not interested in no man’s land entries. pic.twitter.com/xtuMRp7ty9
— Cred (@CryptoCred) June 4, 2019
Source: Twitter
Of the three support levels highlighted by Cred, the first is titled, “Mum please keep this bull market alive support”, an adamant appeal from the somewhat immature traders to keep the market green without technicals supporting the claim. This support level ranges from $6,182 – $6,465, which was first realized when BCH triggered a meltdown in November 2018 following its hardfork. The breakage of this support saw the market drop to $3,100 and only climbed out of it seven months later.
The second support level Cred mentioned in the chart was the “First HTF [Higher Time Frame] support”, placed at $7,258, which Bitcoin broke on 13 May, after breaching $8,000 on the back of announcements from Bakkt and Gemini. Following this, the market dropped down to $7,200, which the analyst regards as an “HTF support” as the price rebounded from here and climbed over $8,800 two weeks later.
Lastly, the analyst mentioned that the price of $8,233 was seen as the point where the Support – Resistance [SR] flip failed, which the tweet mentioned, would result in a short-term top. The chart added that this was a case of “Directional bias switched to short-term bearish. The price range between $8,200 – $8,400 was also tested towards the end of July 2018, when the bear market was in full swing. The ceiling of $8,400 failed to breach, post which the market saw a massive drop to $6,100 in the next two weeks.
At press time, Bitcoin declined by 6.7 percent against the US dollar and was trading at $7,945, hence, the $8,200 level should be given prime importance.