Earlier on today, we saw a massive crash in the Bitcoin price, this crash took the Bitcoin price down to the most important support region I am currently watching.
I talked about this $11,400 support region in my previous analysis titled “Must Read: Take Advantage Of The Coming Bitcoin Breakout!“
In that analysis, I clearly stated that a price break below this Horizontal support will be an entry confirmation for me to sell Bitcoin.
And since then, we have seen the Bitcoin price test and bounce off of that support.
In this Bitcoin analysis, I will be talking about what this current price action means for the Bitcoin price as well as providing you my exact entry for a sell trade on Bitcoin.
Will The $11,400 Support Hold?
The $11,400 support is the last important support region holding the Bitcoin price up. A break of this support could see Bitcoin crashing to the $10,500 region.
This gives us a very great opportunity to make money selling Bitcoin during this short term weakness. But first, I need my confirmation, and that is the Bitcoin price break and close below $11,400.
However, if the $11,400 support holds, then there is a high probability Bitcoin might continue going sideways for a while until the bullish volume and momentum pick up again.
Until this price confirmation is made, the Bitcoin bearish trade is still not ready for me.
Spike In Bearish Volume Confirms Presence Of Sellers
In my previous analysis “Must Read: Take Advantage Of The Coming Bitcoin Breakout!“, I talked about the coming spike in the Bitcoin trading volume, and how this spike will usher in the volatility we have been waiting for on Bitcoin.
Well, this crash to the $11,400 support saw bearish volume pick up. While the volume spike was not that much, it still tells us that sellers are interested in shorting Bitcoin.
However, what I want to see now in the coming days is a follow-through and steady increase in the bearish volume.
This volume indicator in relation with a confirming price action will help increase my confidence in this coming bearish move.
Next Support Level To Watch If $11,400 Breaks
If the $11,400 breaks, the next price region I will be watching for the Bitcoin price to find support at is the $10,500.
This price region has been an important factor in defining the Bitcoin bullish trend over the past few months. However, Bitcoin broke through it without testing it.
So for my bearish analysis, I believe the Bitcoin price as a high probability of going back down to test this $10,500 price region before shooting back up and resuming the bullish trend.
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.