After testing the $40,600 levels after China’s ban news, BTC has not yet fully recovered.
The day started badly after China-based Huobi, one of the world’s largest stock exchanges, announced that it would suspend the accounts of Chinese citizens. BTC, experienced a jump of over 6 percent at noon today. As if market maker whales triggered a serious rise just when everyone expected a decline, and caused the liquidation of close to 300 million dollars of short transactions, that is, investors who think bearish and are called “bears”..
As of the moment, it is seen that the amount of supply in the stock markets in Bitcoin, which is traded at $ 43,300, has decreased again in the recent declines. In other words, despite the decreases, many people withdraw their BTCs to cold wallets in order not to buy or sell BTC. This is actually a positive data for the trend in the coming days.
However, although most in-chain data looks positive, negative indicators should not be ignored. Because it is known that an important indicator in the news below also gives a negative signal.
What Does the Chart Say?
When we look at the chart, it is seen that the price has risen above the MA20 in the 4-hour period with today’s rises. While it is seen that the green area provides opportunities for buying many times in short-term transactions, it is recommended to wait for the price movements to become fully clear for the medium and long-term in this period.
Looking at the support area, it is known that the critical level is $ 40,000. Because this has turned into an important support and on the weekly chart, the MA20 and MA50 levels are between $38600 and $40,800. In particular, the declines may deepen with a 4-hour close below the weekly MA20 levels of $40,800 – $40,000. If this happens, it seems logical to stop both BTC and altcoins.
On the other hand, for BTC to start its uptrend again, it needs to make 4-hour closures on the red area. After this happens, the levels of $ 50,000 may come to the fore again, but as the hazy weather continues at this stage, it seems to be the right strategy to stop and think short-term and sell partial profits on the rise.
*Not investment advice.