Bitcoin is looking very bearish right now after breaking through the ascending channel critical support I have been talking about in a lot of my previous analysis.
This support is so important because it as been holding price up for a while now, and this break only means we might see more weakness come into the Bitcoin market as the days go by.
However, while this current event makes Bitcoin look for bearish and weak for the short term, it is also important to point out that “Bitcoin is currently trading on low and rapidly declining bearish volume“.
This simply means that sellers are not entering the market and this current price dump might actually be a fakeout or we might see the Bitcoin price pull up for a while before finally crashing.
No matter what the price decides to do the most important thing is to wait for trend confirmation from the volume indicator.
In this Bitcoin analysis, I will be talking about the price scenarios for both the bearish and bullish moves. I will also be giving my profit targets as well as the important price level I will be watching in the coming days.
Importance Of The Volume Indicator In Predicting Breakouts
While it comes to predicting the price breakout on Bitcoin, the volume indicator is a very important tool to watch. A bearish breakout is supposed to see a spike in the bearish volume, confirming that Bitcoin traders are actually selling the cryptocurrency.
However currently, Bitcoin as seen no such spike and things are only getting worse as the volume continues to decline rapidly.
If we don’t see this bearish volume increase in the coming days, then there is a high probability that this bearish move is actually a fakeout and we might continue to range and trade sideways
However, if we see the bearish volume pick up in the next few days, then we can expect Bitcoin to crash as low as the $10,000 price region.
My Price Targets For A Bearish Decline In The Bitcoin Price
My price target for a bearish crash is the $10,392 support region. This region as served as both support and resistance for the Bitcoin price in the past and might do it again if the price gets to that region
Once there, I expect to see a bounce and a Bitcoin rally that will resume the Bitcoin bull run to the $20,000 region we have been waiting for.
But as for right now, I am sitting by the sideline and waiting for Bitcoin to make a decisive move to the upside or downside for me to then start looking for ways to take advantage of it.
I am also waiting for the trading volume to pick up, confirming to me that we are out of a ranging market.
To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read my How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With.