Bitcoin witnessed a massive sell-off this morning that sent cryptocurrencies reeling from the region above $ 8,000 to lows of $ 8,100 and has now dropped below the $ 8000 support level.
This intense sell-off has sent BTC deep into a long-term buying area, meaning strong protection of this level could cause BTC to rise significantly higher in the coming days and weeks.
Other analysts tend to agree with this assessment, with a leading trader noting that he believes there is a sure chance that the lows in the latest sell-off will mark a bottom.
$ 92 million long Bitcoin orders were liquidated on BitMEX
As soon as Bitcoin dropped to the $ 8000 area, there was $ 92 million long orders liquidated on BitMEX within an hour.
Data from https://t.co/T3RTVBbJrD shows $ 92 million worth of bitcoin contracts were liquidated on BitMEX within a single hour, as bitcoin fell from $ 8,633 to $ 8,291 in less than 15 minutes. pic.twitter.com/VDvFdNH6Qr
– Joseph Young (@iamjosephyoung) March 8, 2020
The recent price action in favor of bears has led investors to increasingly depreciate against BTC, although the price was able to make a relatively strong rise at a daily low near $ 8,100.
The head of Burger electronic investment consulting comment that this drop could be the beginning of a bigger correction, which could bring it back to $ 6,000. He noted that the recent price action has formed a head and shoulders pattern on the daily chart of BTC. This is a lower pattern breakout pattern.
Nick Patel noted that in order for BTC to see the short-term uptrend, the bulls are required to recover $ 8,400, when a daily and weekly close above this level may signal that the recent lows are long-term bottom.
"BTC: * IF * today closes above $ 8400, I'm sure 75% is bottom. Why? SFP of two important swing-lows, rejected from 360MA and anyone who thinks this is a broken neckline of H&S stuck. The target will be 9250, then reach a new high if support is recovered there.
* IF * we close today above $ 8400, I would be 75% sure the bottom is in.
Why? SFPs of two important swing-lows, rejection from the 360MA and anyone thinking this is a break of a H&S neckline is trapped.
Target would be 9250, then new highs if support reclaimed up there. pic.twitter.com/1pDjnvJLLj
– Nik Patel (@cointradernik) March 8, 2020
Giant “Buy zone”
Patel is not the only analyst showing a cautious bullish sentiment at the moment. Analyst Dave the Wave is claiming that Bitcoin is only entering the buying zone.
"Go to the buying area. Regression of 50% on parabolic increase "
In the buy zone. Full 50% retracement of the parabolic rise. Anyone buying if yet to build a position? pic.twitter.com/fAcvpDCqrk
– dave the wave (@davthewave) March 8, 2020
If the bulls strongly defend this level, it is likely that its recent lows will mark the long-term bottom followed by a significant price increase.
You can see the price of Bitcoin here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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