Bitcoin will retest important support levels

  • Bitcoin Trades Above Long-Term Support Level of $ 5200

  • A fall below $ 5,800 will be a signal to open short positions

  • Bearish outlook remains on weekly charts

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Last week, Bitcoin recovered well and at the moment reached $ 6,900. However, over the weekend, the cryptocurrency dropped again and now, after unsuccessful attempts to break through an important resistance zone, it is more likely to retest the support than to start a bullish move..

Well-known trader @LomahCrypto has released a chart of Bitcoin, pointing to a bearish weekly outlook for the cryptocurrency and the presence of a number of strong resistance levels.

Bitcoin will retest important support levels

But before opening a short position, the trader plans to wait for the quotes to fall below the $ 5800 mark, near which the price is located.

Waiting for Bitcoin to lose $ 5,800 before I start opening up more shorts.

Weekly looks like absolute garbage though. I’ve been predominantly looking for shorts and this is why.

Bitcoin will retest important support levels

– Loma (@LomahCrypto) March 22, 2020

Levels on weekly charts

There are three important levels on the weekly chart, noted in the chart below: below:

Around $ 6700 there is a strong resistance, the status of which was recently confirmed by the quotes. Earlier (last November), this zone acted as a support, and during the rally observed last week, Bitcoin re-tested this mark. But unsuccessfully.

Further, the focus will be on the support of $ 5200. The price traded this zone in April 2019, confirming its status last week. However, in other cases, bitcoin interacted little with this zone..

The next support is located at $ 4000. During the formation of the bottom in December 2008, this mark acted as a resistance.

Bitcoin will retest important support levels

In addition, during the March 12 crash, the token new cryptocurrencies types of tokens. They can represent value or something intangible like voices. Two … More reached this level and bounced up sharply.

As long as the price is within this range, the outlook remains bearish.

Opportunity to open short positions

In a tweet, the trader writes that the signal to open positions for sale will be the loss of the $ 5800 level, which varies slightly depending on the exchange..

A fall below this level and subsequent retesting of support will open up an excellent opportunity to enter the market with sales in anticipation of a further decline, which at this stage looks quite likely.

So, the major digital currency is trading above the long-term support level of $ 5200. Short-term charts signal an imminent retest of this area with possible development of bearish momentum.


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