Where to Put Short or Long BTC Orders?
Before analyzing the cryptocurrency market, I would like to draw your attention to the fact that when such events occur that affect the economies of all countries in the world, we cannot make analysis on the market based solely on indicators of technical analysis. We all know that the market is driven by fundamental factors, based on which technical analysis helps us predict the price movements.
So, what caused the cryptocurrency market slump as well as Global stocks fuses? Are we dealing with the possible start of a new economic crisis, or is it just a consequence of the panic caused by the Coronavirus? I would rather believe that the global economy is ruled by Covid-19! However, we cannot predict how widespread the consequences of Covid-19 can be and how long the panic can last. One thing we can make sure is that Bitcoin price is influenced by the global financial and economic situations
In last week, bitcoin price reached its lowest of $3,800 in 2020, then, it performed a sideways movement. From the 4-hour chart, it has formed a support level in the range of $5,800-$6,000.
Today, bitcoin broke above $6,300, after that it slightly declined and now consolidates around $6,200.
Above the current price, the first resistance level is at $6,300; then the second is at $6,500 and the third at $6,600.
We advise you to be vigilant about placing a buy or sell order outside the support or resistance line, respectively.
If the price breaks above $6,300, the previous correction level, then there is a possibility that it will reach the mark of $6,500. Moreover, if the price nevertheless overcomes the resistance level and consolidates at the bottom of it, then it will be time for long-term investment.
Technical indicators:
Key support levels: $ 5,800 and $ 6,100
Key resistance levels: $6,300-$6,500
Buy Long: open a long position at 6,150, set a stop loss at $5,900.
Sell Short: open a short position at $6,350, set a stop loss at $6,500.
We suggest you not to hold a position for a long time until the market situation is stabilized.
Good luck!
