Bitcoin faced massive resistance between $69,000 and $70,000 and currency is in falling mode. Already down by 3% from the peak it reached at $69,566. What is causing this fall, let’s explore.
Bitcoin Chart Analysis
A heavy diversion is visible on the four hourly chart. The price was moving up however the RSI was moving downwards. This shows that the market continued to lack buyers’ support. If buyers are reducing that means sellers are rising causing the price to drop. Bitcoin is currently trading at $67,370. RSI has fallen down to 43.65 and keeps on falling. On the other hand, MACD is also showing the rise in bear activity. The resistance faced by BTC comes from the $70,000 zone as well as the trend line formed since July this year.
Whale Activity
As stated in yesterday’s article, whales were sitting in the $70,000 area with open shorts. It is clear to the traders that such areas are very prone for a price rejection, especially when it is a previous all time high. Looking at the whale orders, it is pretty clear why this drop happened. The price started falling from the peak of $69,566 as this zone had highly dense short trades.
As of now, the bitcoin price received support from the $67,500 zone which is a great support zone. However, there is still a chance for another drop once it reaches $68,000.
As over 98% of the investors are in profit, whales take this opportunity to take out profit and get more btc in a lower price.
What to Expect
With high price volatility, it is advisable for the traders to have great risk management. Over 64 thousand traders lost their funds in the last 24 hours. Just in the last 1 hour of writing, $48.20 million of trades were rekt. This up-down momentum provides earning opportunities but these are very risky ones. If one is unable to judge the timing, stay away from the market. Very soon we might see the price breaking the $70,000 barrier and reach the all time high of $72,000. After breaking this point in the next few days, a new journey will start for BTC.
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