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Bitcoin price drops below $ 8,000 again - should "Buy the dip" be available now?

    Bitcoin price faltered as the bulls tried to hold support at $ 8,300

    Bitcoin (BTC) price once again dipped below $ 8,000 on the evening of March 10 (Vietnam time) – recorded a loss of 5.11% to hit a low of $ 7,728 after hitting a daily high of $ 8,149. The revival came after New York Gov. Andrew Cuomo declared a quarantine of Westchester County bordering the city to the north for at least two weeks to prevent the spread of the Corona virus.

    Cuomo has also deployed the US National Guard to this area and all schools and public facilities will remain closed, and the National Guard will support the distribution of food to those who are isolated. cup at home. Cuomo described this situation as a “matter of life and death.”

    The traditional markets opened relatively optimistically before falling sharply from 4% -5%, but at the time of writing, both S&P 500 and DOW achieved at least 0.95% and 0 increases. , 7%.

    Daily cryptocurrency price chart. Source: Coin360
    Daily cryptocurrency price chart. Source: Coin360

    Despite the formation of an inverted head and shoulders pattern on the hourly time frame, many Bitcoin traders still expect the price to fail before the $ 8,000 resistance level, as evidenced by the high volume button on the VPVR indicator.

    In general, it seems that investors are still cautious about joining the market at the moment due to the seriousness of the recent correction, and it seems that previous support levels will now be worth resistances. form.

    Currently, Bitcoin needs to reclaim the range of $ 8,000 to $ 8,150 before traders standing outside the market rejoin, although there were certainly some people who opened the Long position yesterday when the price dropped to $ 7,629.

    4-hour chart of BTC / USDT. Source: TradingView
    4-hour chart of BTC / USDT. Source: TradingView

    The 4-hour time frame shows that the bulls are at the support of $ 7,735 and the moving average convergence divergence (MACD) is trying to rise above the signal line and the histogram bars have shortened, approaching zero.

    The relative strength index (RSI) is also rising from the oversold zone and a massive rally at $ 8,150 could see Bitcoin price bounce to $ 8,500 – an area where traders may short. In case BTC fails to hold $ 7,800, below will have basic support at $ 7,735, $ ​​7,500 and $ 7,375.

    Weekly chart of BTC / USD. Source: TradingView
    Weekly chart of BTC / USD. Source: TradingView

    On March 1, CoinTelegraph analyst Scott Melker tweeted the chart and explained that:

    "If the price is within this red circle, I will buy everything. I have discussed this area in Wolf Den for weeks. This is going to be a retest of important declining resistance levels like support and recovery of the yellow bag – or even 70.5 OTE. "

    Weekly chart of BTC / USD. Source: TradingView
    Weekly chart of BTC / USD. Source: TradingView

    Melker reviewed this topic today, updated the chart and commented that:

    "I said I would buy a lot here and my bid was filled overnight. This is the entry point that I have been discussing for weeks – a gold bag return, 70.5% OTE, and a weekly descending channel retest. "

    As Bitcoin continued to recover after yesterday's slight decline, many altcoins rose in price from over-sold conditions. Tezos (XTZ) bounced 8.18%, NEM increased 6.53% and Stellar (XLM) earned 4.59%.

    The total market capitalization of cryptocurrencies is at USD 224.5 billion with Bitcoin's dominance rate reaching 63.8%.

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    According to CoinTelegraph
    Translated by ToiYeuBitcoin

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