Bitcoin (BTC) has lost more than 16% of its value since September 13. The cryptosphere is in the red, despite the success of the Merger. For a crypto mother, this drop brings her to a vital support zone. This is the lowest range since June, sitting around $18,800. Will it bounce back or drop below this level? Let’s try to find the answer in this graphic analysis.
The crypto market in the red
In one week, the total market capitalization of cryptocurrencies suffers a drop of 11.46%. Many digital assets are showing bearish patterns on their charts. Like Ethereum, which broke the rising wedge recently.
This decline also brings bitcoin (BTC) towards the support found around $18,800. Not to mention that this is the lowest of the range since June.
For fans of chart patterns, this drop is just a logical continuation of the ETE pattern seen daily on BTC. But not only that, there is also a raised wedge breakout.
Therefore, all these figures seem to be in favor of a decrease in the price of bitcoin. If the sellers continue to lead, the price of this cryptocurrency should reach $ 17,700, or even fall below. However, there seems to be hope for the bulls: the support zone has been hammered.
Bitcoin (BTC): “hammer” the support zone?
In fact, a reversal pattern called a “hammer” has formed near the bitcoin support zone. This figure can be seen by placing the BTC chart on a daily scale. This is a very recurring candle shape, which is depicted as a hammer, as its name suggests.
Very popular with the trading community, this figure means that the buyers are starting to gain strength. In addition, it sits on $ 18,800 bitcoin support. For a technical trader, this increases the likelihood of BTC price bouncing off the support. Therefore, he can consider opening a long position based on these two parameters.
If bitcoin price breaks down the range, its value is likely to fall below $17,700. But for now, the hammer on support seems to be rekindling the optimism of the bulls.
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