Bitcoin Price Analysis: This sell-off looks like the real deal
- Bitcoin trades over 6% lower on Thursday as another round of selling kicks in.
- There has been an uptick in volume during this sell-off too.
BTC/USD 4-hour chart
The trendline that begins from the low of 3858.00 back on 13th March is now being tested once again. The 4-hour chart below shows the price has tested the uptrend at least three times and now we could possibly see a break.
This move lower over the last couple of sessions has been backed by some decent volume giving us clues that it could be the real deal. In the way of the potential down move is the 200 simple moving average (SMA). The SMA often provides some support when tested as you can see in mid-April.
The Relative Strength Index indicator is also looking slightly oversold so there could be a small pullback before the underlying trend continues. But the main thing is the fact that the chart has made a lower high pattern and a move down looks more likely.
In terms of potential targets, the area just above 8K looks strong and below that the purple 7.5K level could be the next target if the aforementioned 8K level breaks.
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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.
