The last 36 hours for BTCUSD were nothing short of a Hollowood flix. BTCUSD suddenly shot up to $10,300 and then dropped back to $8,600 in Bitmex.
Traders rushed to the Bitcoin exchanges to place their desired trades. Now that the frenzy is over, BTCUSD is heading into a consolidation phase.
BTC faces two immediate resistance zones
BTCUSD is currently trading at around $9,540, and the day’s range is $9,380.99 — $9,646.00.
The BTCUSD daily timeframe shows the presence of two resistance zones. The first resistance zone is from $9,621.54 – $10,050. The second resistance level that also happens to be the stronger resistance level for BTC now is the zone between $10050 – $10,500.
There is a possibility of BTCUSD rising from its current level. However, it is likely to fall back. And since, with a rise, several investors would look for booking profits, the dump will be higher than the buying. Therefore, the fall will likely be more profound than the climb.
Price action prediction for BTCUSD
Currently, BTCUSD will likely consolidate. After a period of consolidation, there will be a push from the Bulls. The momentum of the Bulls needs to be pretty high to break past the resistance zones.
A fall to $8,800 soon seems probable. The support levels are at $8,814 and $8,633.
Before the crash took place, a lot of analysts referred to the Put-Call ratio or PCR, to determine the direction of the movement. Several analysts gave the verdict that Bitcoin was bullish. However, that didn’t take long to change.
Therefore, unless BTCUSD investors gain back confidence, there is a rare probability of passing the resistance zones in the short term. The best move now would be to buy BTC and hold them with a long term horizon.