Taking a closer look at the charts for Bitcoin (BTC) and Tron (TRX) below, our goal will be to develop scenarios to understand the potential levels of support given what appears to be – for much of the cryptocurrency complex – a new lower leg in the general bearish trend that began at the beginning of this year.
This process involves the implementation of a study of both the tone of the action and the levels displayed on charts based on a complex analysis of historical prices and key levels that have played important roles in 39; action during the last year of price movement.
- High: $ 6723.1
- Low: $ 6404.1
- Volume 24 hours: $ 4,80B
- 7-day percentage change: -13.03%
While the last days selloff has been relatively severe, Bitcoi n (BTC) remains a global island of relative strength based on the entity of its recent declines – much less on the downside of what we see in many other large market-capitalized currencies – and on the relation of its current price to its main junctions In recent months.
In other words, Bitcoin (BTC) remains well above its lows since late June, unlike many other currencies.
However, even given this relative strength, one can not deny the technical damage that has been done in the last 10 days. The simple 50-day moving average is toast. Even the tops of the range from early July are toasted. Which centers our analysis on the pivot minima established at the end of March and at the beginning of April between $ 6400 and $ 6600.
The key level below that point for Bitcoin (BTC) is marked by a minimum pivot established at mid-June and the clearest lowest low-pivot inflection established in mid-July. This level is still well below but it should be on the radar at around $ 6100.
Or the current zone around $ 6500, or this lower level around $ 6100, should be enough to trigger at least one point depletion in able to spur a rebound back to test the simple 50-day moving average in confluence with the $ 7000 level.
- High: $ 0.0277
- Low: $ 0.024744
- 24-hour volume: $ 120.77M
- 7-day percentage change: -18.9%
Tron (TRX) is a very different image.
Although it may appear that the action in Tron (TRX) was driven by a correlation with Bitcoin, it should be clear that TRX is failing inadequately with Bitcoin in recent actions and has shown this underperformance for the part better than in the last few months.
On his face, this makes Tron (TRX) one of the coins with the worst performances ac Ross the crypto complex in recent months. This suggests that TRX has become crowded with overly burdensome rebound positions that are now being liquidated as the recent lows are eliminated during the decline.
However, hope is inevitable in a bear market. And the next level of hope that could come into play and push the potential for a rebound to Tron (TRX) should come into play when we reach oversold readings on the 14 day RSI indicator in confluence with a pivot minimum test from early February and mid-March near the $ 0.025 level.
Happy Trading ~
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and / or its affiliates, employees, writers and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own in-depth research before investing in any cryptocurrency and read our full disclaimer
Image courtesy of Pexels
Charts courtesy of tradingview.com