Main to remember
- Bitcoin dropped this week, a gesture that launched on Sunday, when more than $ 1.5 billion in leverage in the cryptocurrency were liquidated.
- Since a lower swallowing scheme marked the digital asset record last month, the price was less than a decreasing channel ordered, recently falling below the 50 -day mobile average.
- Investors are expected to monitor the main levels of support on the Bitcoin graph around $ 107,000 and $ 102,000, while monitoring the resistance levels close to $ 117,000 and $ 123,000.
Bitcoin prices (BTCUSD) fell this week, stifling a rally that brought back the cryptocurrency for the high set of all time last month.
The sale began on Sunday, when more than $ 1.5 billion in leverages with Bitcoin lever were liquidated. Bitcoin fell below $ 109,000 Thursday evening, reaching its lowest level in a month. The digital currency was exchanged about $ 110,000 on Friday afternoon, down approximately 5% compared to a week ago and 10% of its record greater than mid-August.
Below, we take a closer look at the Bitcoin graphic and use a technical analysis to identify the key levels that deserve to be monitored.
The descending channel takes shape
Given that a lowered engulfing reason marked the Bitcoin record last month, the cryptocurrency tends to decrease in a descending channel ordered.
Earlier this month, digital assets underwent a sales pressure near the higher trend line of the model, the bears recently leading the price lower than the 50-day mobile average.
Meanwhile, the relative force index has gone from the bullish territory to the lower territory in the last week to confirm the weakening of price dynamics. It should also be noted that the volume of negotiation on Coinbase (corner), the greatest exchange of crypto in the United States, has remained moderate in recent months, indicating interests of dull investors.
Identify the key support and resistance areas on the Bitcoin graphic that investors will probably monitor.
Key support levels to monitor
Short-term weakness could see the price of the cryptocurrency initially test the level of $ 107,000. This area could provide support near Swing Low last month and two prominent peaks that were formed on the graph in December and January.
A fence below this level of key support could bring the region into play of $ 102,000. Buyers can look for entry points into this place near the hollow of the downhill canal and a trend line which connects several peaks and hollows on the graph go back to December.
Resistance levels that deserve to be monitored
During increases, investors should monitor the level of $ 117,000. The price can come up against resistance to the general costs here almost this month of this month of the trendy line of the downward chain and a period of side drift which developed on the graph throughout half of July.
An bullish escape above this level could see the increase in Bitcoin prices at around $ 123,000. This region on the graph would probably attract significant attention near several seated peaks just below the top of all time in cryptocurrency.
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