Bitcoin as just broken through the $9,000 support region and is crashing lower. If you have been following my Bitcoin analysis then you should know the importance of that region and how it affects my bullish bias. I talked about it in-depth in my yesterday’s Bitcoin analysis and you can read all about it here.
In this Bitcoin analysis, I will be talking about this current Bitcoin crash and giving my opinion on if I think it is a legit crash or a fake-out. I will also be giving my opinion on if I think it is worth trading.
Is It A Legit Price Breakout Or A Fakeout?
The answer to this is I don’t know. However, it is important to note the declining volume present in that price breakout. And one thing as been predominant in Bitcoin and that is “once there is a decline in volume during a price breakout whether to the upside or downside, there is usually little to no follow-through in price”.
In simple terms, I don’t expect the price to keep on crashing. Sooner or later it will snap back up and it is important you do not get caught at the wrong side of the market during this bullish move back up.
It is also important to note that the Bitcoin hash ribbon indicator is still flashing a massively bullish signal, and this signal is one of the most accurate bullish signals for Bitcoin. So, I expect a lot of bullish momentum to start entering the market soon in preparation for the massive %5,000+ bull run that is to come.
What Levels Should You Be Watching Out For?
The most important support level I am currently watching is the $8,000 support region. If the price of bitcoin breaks through this support region with sufficient volume, my bullish bias would change for the short term, because we might see the bitcoin price actually crash to the $7,000 region or even lower to the $6,000.
However, my overall bias for bitcoin longterm is still very bullish and will remain so even if the price does get to the $6,000 lows.
The fundamental news of Bitcoin as also been really great, with Bitcoin seen an increase in mass adoption and business utilization of the cryptocurrency as a valid means of payment.
We are also seeing a lot of relaxation of regulations around the world as more investors (both retail and institutional investors) are flocking to Bitcoin for its long term value and growing dominate over fiat currencies.
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 BitcoinGuide. You can also check my top list of Best Bitcoin Exchanges To Trade With.