Crypto Update: Bitcoin Holding after Key Support Test
Hi traders, Tuesday’s report we’re looking at Bitcoin after buyers fought back from a new break lower and look to have reconfirmed key support.
Things looked grim for Bitcoin yesterday, as sellers came very close to retesting September 39,543 low. The move followed a general risk plunge that also affected currencies and stock indexes. Once Bitcoin beat 40K to the downside you might have thought it was a decent short bet but as we see many times in the markets something shifted and buyers raced back into risk markets. The Nasdaq reclaimed 2% in losses while Bitcoin pulled back 5% moving back above 40K but closing in the red.
While, yes, Bitcoin did close in the red, price did re-hold 40,900 key support telling us that buyers are prepared to move in once a value point is reached. It’s all up to buyers now. If we’re going to see a new leg higher develop. First, we need to see key support held and we need to see minor resistance beaten. A break of minor resistance should also set up a break of the fast trend. A new move lower that breaks key support sets a potential continuation of the main trend.
Have we found a value point? Could the demand area and failed low set up a new push by buyers?
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