Bitcoin Price Analysis: After the price crash where could BTC/USD find support
- BTC/USD fell 9.18% in minutes earlier in the session on Tuesday.
- On the chart below let's look to find some support zones.
BTC/USD 4-hour chart
Bitcoin has taken a tumble on Tuesday just as the 10K level looked to have been a thing of the past. This looks like a bank of orders have been triggered or some potential profit-taking has taken place.
Either way, this leads to traders looking for levels where the market might stop. First and foremost the price is now struggling at the 4-hour 200 period Simple Moving Average (SMA). Even looking back on the chart the 200 SMA seems to be a decent support and resistance zone on this timeframe but the volume on this move lower could be too hot to handle on this occasion.
The next level down is the black support level at 9K. There has been 3 occasions on this chart alone where the 9K level has been used in a reactionary manner. Beyond this, there is another support zone near 7645.00 (marked in blue). This level is where a previous price drop back in March 2020 stalled. It then became a congestion point toward the end of April and could be a price magnet again.
This is still an uptrend and a higher high wave has been made. As always the trend remains your friend so the bulls can look for support zones to re-enter but the volume does look pretty strong this time round compared to some other retracements. The volume has been circled in the indicators for you to see the move high was matched almost perfectly by the move lower in terms of participation.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
