- The flash drop ignited by the news of Binance exchange suffering a hack attack tested the support at $5,700.
- BTC/USD is initially supported at $5,82973 among other key support areas.
- Bitcoin has the potential to correct to $6,500 as long as the technicals remain intact.
Bitcoin is in a bullish zone and it appears that the asset found a bottom following the elongated downtrend from the beginning of 2018 after the parabolic rally in 2017. Over the last two months, the digital asset has tackled new yearly highs while defending key support area. As long the technicals remain intact as they at the moment, BTC/USD still has a huge potential for growth.
The flash drop ignited by the news of Binance exchange suffering a hack attack tested the support at $5,700. However, the price did not stay down for long as it made an about turn above the 200 Exponential Moving Average (EMA). The price made it above $5,800 and cleared the resistance at the 100 Simple Moving Average (SMA) 15’. Bitcoin has beaten the resistance we discussed in the price analysis earlier today to trade at $5,859 at press time.
Looking at the confluence detector tool, we the price upside immediately capped at $5,890.67 with the second barrier at $5,951.62 and the third hurdle at $6,012.57. Overcoming the sellers’ congestion at these levels could open the door for more movement to the upside that would eventually hit $6,300 and $6,500.
As far as support is concerned, BTC/USD is initially supported at $5,82973. This is strong support as displayed by the confluence detector tool. However, if bear pressure increased and Bitcoin tanks further, $5,646.89 and $5,524.99 will come in handy to stop the losses. Otherwise, sliding below this level could spark more losses with minor support areas in place to halt the trend at $5,403.10 and $5,281.21.
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