Short sentiment spread, the market change to confirm downward, the key support level can support

From a comprehensive analysis, the current short sentiment is heavy, and only two supports exist below bitcoin, namely 31000 and 29000.

According to Bitcoinwin digital platform quotes, last week BTC came out of a relatively narrow oscillation range, the overall fluctuation in the 35000 – 40000 range. The market came out this way on the one hand because there was no major negative and positive news last week, and on the other hand because the market needs a longer period of time to sort out and repair the indicators since the big drop.

Yesterday, BTC failed to hit the 37000 resistance level in succession, bullish sentiment again suffered a heavy setback. The market continued to oscillate downward from yesterday evening after the second attack was weak, and the downside was larger. As of this writing, BTC was reported at 32,877, down 8.76% during the day and 9.33% in 24h.

In terms of volume, last week BTC was declining in volume throughout the sideways phase. We had already expected that a change in the market would also come, but we didn’t expect it to be so fast, and the whole digital currency market saw a big drop today.

After searching through the entire information platform, it seems that the logic behind the real decline cannot be found from the news, so now we have a glimpse from the fundamentals, that is, the chain data.

It is obvious to see that in the past month, although BTC fell sharply from near 59000 to the current 36000, but still can not stop the “rich list” members of the subscription passion, regardless of the rise and fall of the market, the large institutions are always adding positions.

Through the relevant data platform statistics found that the BTC top 50 coin holding address from the beginning of this year 2,138,600 to the current 2,663,800, coin holding ratio from 11.51%, increased to the current 14.22%, more than 6 months increased by 525,200, an increase of 2.45%.

Through the above data, we can find that the big institutional investors are still buying BTC without fear of market rise or fall.

In summary, from the fundamental analysis, it seems that the conclusions are all on the positive side of the market, we then do an analysis of the current market from the technical side.

In the last half month, bitcoin prices have been running low, and have been suppressed many times after reaching the $40,000 line, which shows that the market has not enough momentum to rebound and cannot show a sustained rebound.

Short sentiment spread, the market change to confirm downward, the key support level can support

The chart above is a daily level chart of bitcoin. From the chart we can obviously see that the market failed to break through and stabilize the daily Bollinger band mid-rail many times last week, pressured below the downtrend line (green down arrow), the market has also been running below the Bollinger band near the mid-rail, we can see that the defensive side of the short side is still very strong.

Then look at the several pullbacks in bitcoin since the big drop, bitcoin’s lows have been rising, and there is more support below. Then as the lower Bollinger band keeps moving down and the support below keeps lifting, the market will squeeze in a smaller and smaller space, namely the oscillating triangle space formed by the two green arrows in the chart.

As mentioned earlier, in the major exchanges, the volume of BTC in the last half month is decreasing day by day, with the extreme shrinkage of the volume, and the price continues to squeeze in a smaller and smaller space, then the day of change will also come soon.

Today, BTC’s change day has arrived, BTC also officially confirmed the next period of a wind direction. btc from the early hours of this morning, fell below the uptrend support line, rapid turn straight down, directly forced 32000.

In the four-hour level, three consecutive negative, the market down to touch the lower rail of the Bollinger band and break its constraints to run below it, and immediately after another large negative K line, the market continues to test down, the lowest drop to 32325 points, as of now has not appeared to stop the signal; in wave after wave of bloodshed, the market holders began to hold down, panic continues to rise, from the current K line trajectory From the current K-line trajectory, although the market has been down to the 32000 mark, but did not recover the meaning of the fear of a greater challenge to occur.

Short sentiment spread, the market change to confirm downward, the key support level can support

Then from an hourly view, MACD empty energy column began to shrink, the day may have a rebound, but the current rebound strength is too weak, along with the rebound volume is small, here the risk has been revealed, “bottoming out” need to be cautious!

Comprehensive analysis, the current short sentiment is heavy, bitcoin below now only two support, respectively, 31000, 29000, although the low may bring some bottom support to the future market decline, but in the face of the current weak rally, the support level below is still precarious. The next focus needs to be on the effectiveness of the support near 31000, once the volume falls below fear to continue to test the low near 29000.

Posted by:CoinYuppie,Reprinted with attribution to:
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