Bitcoin Price Analysis: Taking a breather in the safe area beyond critical lines
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Bitcoin is downward after the hack of Binance exchange, worth around 7K coins.
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Despite the fall, the technical key levels have been fully respected.
We are getting worldwide headlines telling that Binance, the first ranked exchange in the world by volume, has been hacked using Syscoin token weak point. It’s not the first time that this kind of news impact market prices and, as usual, the impact on market participants diminishes as more exchanges repair the damage quickly.
BTC/USD 240 Min
Bitcoin is trading at $6,477 and has lost the $6,570 support. The downward movement might go down until the $6,400, slightly above the $6,370 mark, where the SMA100 and the EMA50 are currently located. It is also at this level where we can find the lower line of the channel that frames the price.
On the upside, Bitcoin needs to overcome the recently lost level at $6,570 to be in good position to attack the SMA200 that is just below the $6,745 level. Only exceeding this moving average would the Bitcoin enter in uptrend mode.
If instead, the BTC/USD chose to go back to the death-games fields right by the cliff, the first targets are those already mentioned, the EMA50 and the SMA100. Below this level, BTC/USD has no obstacles until the $6,200 price level, looking afterwards to the far next support at $5,850.
MACD at the 240-Min chart shows us that the indicator has crossed downwards and probably will keep this route down until the zero level.
The Directional Movement Index at the 240-Min chart shows us the increase of sellers in the last hours, but this is not enough to treat the buyer's dominance. The ADX line is moving above the 20 level, confirming the continuity of the uptrend.
Author
Tomas Salles
FXStreet
Tomàs Sallés was born in Barcelona in 1972, he is a certified technical analyst after having completing specialized courses in Spain and Switzerland.
