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The Bitcoin price is one of the most important levels of support as the bearish mood grows

May 27, 2020

Bitcoin (BTC) price had a relatively quiet day than Digital assets were traded between USD 8,700 and USD 8,885.

Currently the price remains below the trend line of the ascending channel and the daily candle is closed as a neutral doji, which shows this Bulls and bears deny the direction Bitcoin will take in the short term.

The Bitcoin price is one of the most important levels of support as the bearish mood growsThe Bitcoin price is one of the most important levels of support as the bearish mood grows

Weekly chart of the market price for cryptocurrency. Source: Coin360

How The price is looking for the direction and its domain rate drops from 67% to 65.5%A handful of old coins continued a series of impressive double-digit winnings lasting several days.

Despite the fact that Bitcoin’s price had difficulty recovering $ 9,000 and re-entering the ascending channel, Cointelegraph reported this Most of Binance’s top traders will remain in CoinMarketCap’s top digital asset and a number of large-cap altcoins over the long term.

The mood among investors is increasing

Interestingly, data from TheTIE, a crypto-oriented alternative data provider, shows this Investors are increasingly pessimistic about the short-term outlook for the Bitcoin price.

Daily Mood Score vs. Price (BTC). Source: TheTie

As shown in the graphic above, In the past week, the drop in Bitcoin prices corresponds to a decline in sentiment. TheTIE defines daily sentiment as a “measure of how positively or negatively Twitter conversations about a given currency have been in the past 24 hours compared to the last 20 days. A value below 50 implies that conversations are in progress.” they are becoming more negative. ”

A previous Cointelegraph analysis discovered the relationship between the volume of the tweets. Bitcoin mentions trading volume and spot prices, so Maintaining an indicator of social activity related to cryptocurrencies is a practice that many investors find useful..

Fear and greed index. Source: Alternative.me

The index of fear and greed, another popular Bitcoin mood measurement index shows a sharp decline in bullish sentiment. Currently, the indicator shows “fear” and stands at 39, a significant decline from last week’s “neutral” value of 50.

Last week, when the price of Bitcoin repeatedly bounced off the rising channel’s trend line, investors felt some reassurance regarding the digital asset and secured a closing price above $ 9,300 as the channel had provided strong support during the course of more than two months. But, As soon as the price closed below the channel last week, the bullish mood fell.

Closure above 20 MA is required

Despite remaining under the ascending channel and at $ 9,000 The Bitcoin price is starting to hit daily lows higher and the MACD histogram indicates a decrease in the declining dynamic.

Although the $ 9,000 recovery would be a positive move, the price is now trading below the long-term downtrend line from the 2020 high of $ 10,500. A more encouraging sign would be that the price is above the 20-day moving average.at USD 9,240.

Daily BTC USDT chart. Source: TradingView

In the last days $ 9,000 and $ 9,100 were the levels of resistance that the price found difficult to overcome;; The price has stayed below 20 MA since it dropped from $ 9,800 on May 20.

Currently The price is trying to return to USD 8,900. A push above $ 8,950 would open the door to a quick switch to $ 9,100, but resistance at that level and at $ 9,200 could lead to a quick rejection.

Some traders also see a possible short-term resistance level in USD 9,300.But as an entry to the current price, it doesn’t seem to offer an attractive risk reward.

1 hour BTC USDT chart. Source: TradingView

There is also a shoulder-head-shoulder pattern on the one-hour frame, which means that Repeated declines at $ 8,880 could lead to the completion of the right shoulder and cause the price at $ 8,700 to fall below the support.

As already mentioned, The Bitcoin price shows higher lows on the daily 4-hour chart And buyers bought the recent declines at $ 8,700. In the short term, traders can watch a 4-hour close above $ 9,000 and $ 9,100 to see if the price can hold above both levels.

In the event that Bitcoin falls below $ 8,700, the visible area of ​​the volume profile is displayed $ 8,550 as the last level of support before the price could drop into the range of $ 7,700 to $ 7,450.

The views and opinions expressed here are solely those of author and do not necessarily reflect Cointelegraph’s views. Every investment and every trade step involves risks. You have to do your own research when making a decision.