Analysts warned of Bitcoin's "Short" signal as in textbooks, the worst being possible for $ 1,800

Bitcoin faced grim rejection overnight in the lower $ 7,000 region, causing it to decline all the way to support a low time frame at $ 6,800, with bulls trying counteract a drop below this level.

Today the bearish movement marks an extension of the first bearish momentum that arises in the denial of the cryptocurrency at $ 7,500 earlier this week, with selling pressure here proving impossible. overcome.

However, it is important to note that a prominent hedge fund manager is noting that Bitcoin has established some strong resistance that is likely to damage its short-term market structure, providing for Ideal short opportunity investors.

Bitcoin flashes signs of excessive weakness

At the time of writing, Bitcoin is trading more than 5% down at its current price of $ 6,880, marking a noticeable decline from the daily high of $ 7,300 that was set yesterday.

For BTC to regain its position above $ 7,000, it is imperative that the bulls defend the $ 6,800 support level.

If this level is protected and cryptocurrencies rise again quickly, the goal will be to return to the area between $ 7,000. Analysts note that another denial here can be very catastrophic.

Teddy, a famous trader on Twitter talked about this level in one tweet Recently, note that the bulls don't want this level to turn into resistance, because another denial here could cause the market to see some serious downside.

While looking at the chart he references above, it looks like this overhead resistance is around $ 7,800.

Hedge fund manager suggests "short like a textbook"

Mark Dow, a well-known fund manager and economist, explained in a recent tweet that he is increasingly reducing the price of Bitcoin due to the excessive resistance that has been established just above the current price.

He noted that this resistance provides investors with an opportunity like textbooks for short positions, signaling that he predicts the cryptocurrency will drop in the coming days and weeks.

Bitcoin on the chart is facing too much resistance. Based on this chart, this case is an opportunity like textbook to short.

If Bitcoin loses the support currently supporting or rising and faces another rejection in the $ 7,000 to medium zone, this could catalyze a strong downtrend that led to a partial removal. The huge profits that it has generated over the course of several weeks.

If Bitcoin khhe kept it, a drop below 2,000 is possible

The bitcoin price has been more volatile than ever in 2020, rising from $ 6,800 at the beginning of the year, to over $ 10,500, then falling below $ 4,000 in just one day. But in less than a month, Bitcoin surged 100% from the bottom.

But failing to sustain the momentum above $ 7,000 could leave the leading cryptocurrency limited by market risk that could cause another explosive collapse, which could bring the price per BTC back to 2015 and 2016 levels. .

On a linear scale on the highest time frames, there is a key support area that has never been tested before. The area is right above the all-time highs since 2014 and a breakout point in early 2017 kicked off the historic growth market.

Analysts call the area a "zero or hero," referring to the fact that Bitcoin's price drops to a low level that would put the asset at risk of hitting zero. This area could be a lifelong financial opportunity, equivalent to buying Bitcoin at $ 150 at the bottom of 2015, after which the price flies straight to $ 20,000.

Such a transaction would make anyone a hero, completely changing their life. But it could also lose everything.

Most investors participating in the cryptocurrency space are aware of this and are advised to invest only with what they have, and the money lost will not affect your life.

But just like when Bitcoin's price drops to zero, the asset can eventually reach $ 100,000, giving people plenty of reason to take risks when the cryptocurrency falls to such a level.

You can see the price of Bitcoin here.

Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Xia Lei

According to AZCoin News

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