The BTC price began to fluctuate around $8300 and dropped to $8000 as the United States President Donald Trump stated that he would further seek further military action against Iran following Tuesday night’s bombing of the two air bases in Iran. The 4.82% pullback suggests that speculators looking for Bitcoin price to rally on the increasing chances of war with Iran decided to either pull their bids or take the profits as Bitcoin struggled to hold $8,300. It has to be kept in mind that the price of the BTC has rallied and kept on increasing till it reached the $1,100 which is 15%, during the intra-day trading. When it comes to Bitcoin price movements, there has to be many factors that should have been considered.
The Traders who traded in Bitcoin were optimistic and hopeful that the BTC price would hold at the price level of $8,300. It was clear that this area would be an area of major resistance for months. The level in discussion is the price mark of $8,300. The $8,300 mark failed to give support for the investors, which failed and then the next price level that provided support was the price floor of $8,130. This calculation was made on the basis of 200 days moving an average method which is a very common technique that is used to calculate the price of stocks in the stock market. During the time of the update the Bitcoin price continually fall to the price level of $8000 and the bulls are attempting to hold the 200-DMA. The price of Bitcoin was under the fall and it had no such correlation with the President Donald Trump making the announcement of hitting Iran with a nuclear missile. But as the chart showed the price of the virtual currency in the fell from the sky as investors got shocked as it was happening in real time.
Image Source: cointelegraph.com
What led to the price of the BTC fell from grace, cannot be ascertained, is it the normal movements in the price of the virtual asset or the announcement that ignited the fuse, which mad the price go downhill, is the matter of speculation and in-depth research. Another indicator that gave us a hint was the moving average convergence divergence. This is also known as MACD. It also suggested that the asset was running out of steam. But the candle stick in the chart also suggested that the pull back was also at work. The price mark at which the candle stick indicated was at a price level of $8,478. As of currently if the $8,000 mark gives away to resistance traders and speculators might find comfort in the price range between $7,850 to $7,500. This price range also happens to be the close to the 60% to 50% in the Fibonacci retracement zone.
Image Source: cointelegraph.com
Those investors and traders who rely on the Bollinger Bands know that BTC price tends to bounce between the lower band, middle band and the top band as rallies and correction occurs. The recent rally to $8,478 brought the price above the Bollinger band. It is normally the norm for the BTC price to hold before either dipping below the moving average until it touches the lower band, and then it price consolidates and gains momentum to resume the uptrend. The Bollinger band moving average is currently at $7,660, so if the price drops, the traders and investors may look to open up positions starting at $7,660.
The 1 and 4 hour timeframe shows Bitcoin price above the 50-moving average and it is important for the digital asset to retake the price level of $8,116 price mark. A closer look at the price movements of the BTC price reveals that the signs are looking good for the virtual currency.
Source: Coin Telegraph
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