Bitcoin’s Latest Rollercoaster
Bitcoin recently took another dip below $8,000, hitting $7,728 after briefly touching $8,149. If you’re keeping score, that’s a 5.11% plummet—just another day in the unpredictable world of crypto! The latest shake-up coincided with Governor Andrew Cuomo’s announcement of a quarantine in New Rochelle, NY, making it clear that life outside the crypto space can also be chaotic.
Market Reactions: Crypto Meets Quarantine
The pandemic news didn’t just impact the crypto market. Traditional stocks followed the trend, opening robustly before succumbing to a drop of 4 to 5%. However, both the S&P 500 and Dow managed to claw back slightly, posting gains of 0.95% and 0.70% respectively.
What the Charts Say
Even with an inverse head and shoulders pattern appearing on the hourly time frame, many Bitcoin traders were wary of resistance at the $8,200 mark. Why? Because, let’s face it, past experiences have shown that former support levels can often turn into pretty formidable resistance.
Support Levels: The Battles Ahead
Right now, Bitcoin’s on the hunt to reclaim the elusive $8,000 to $8,150 range. It’s like the crypto version of King Arthur searching for Excalibur. Those who chose to wait on the sidelines might just be tempted back in if Bitcoin can level up. A key detail: In yesterday’s drop to $7,629, a handful of brave souls likely jumped into long positions.
The Bullish Indications
The 4-hour chart presents a more optimistic note with indications of bulls coming in at $7,735 support. MACD (moving average convergence divergence) seems to want to cross above the signal line, suggesting that momentum could burst forth if the right conditions manifest. If Bitcoin notices a surge past $8,150? We might just see a rally to $8,500. But beware: traders are definitely eyeing potential short positions at those heights!
What’s in the Crystal Ball?
If things get shaky and $7,800 doesn’t hold, Bitcoin has some backup plans at $7,735, $7,500, and $7,375. Scott Melker, a familiar name in the crypto community, recently shared insights about price areas worth buying. He even hinted at a golden pocket retrace, an enticing opportunity for those keen on spotting value in dips.
Altcoins Join the Party
While all this was happening, many altcoins decided to jump off the oversold bench and make their presence felt. Tezos (XTZ) surged by 8.18%, NEM tagged along with a neat 6.53%, and Stellar (XLM) gained another 4.59%. Meanwhile, the entire cryptocurrency market cap currently stands at $224.5 billion, with Bitcoin solidly holding onto 63.8% dominance. It’s a wild world out there!
