Bitcoin sentiments are currently in an uncharted territory, never before has it witnessed an economic crash nearing recession. In fact, it was launched during the after shocks of the previous one.
The volatility in the markets is so high that we have witnessed two 50% moves in the last two days. Nevertheless, in accordance with technical analysis, these levels have been revisited in the past.
In case of bullish resistances, the swing low from the 2019 bear market at $6400 is likely to pose strong resistance.
Moreover, as the uncertainty continues to linger around the outbreak of coronavirus, the price might look to form a range before break-out can be confirmed on either side. Popular crypto trader, Ultra, tweeted on the levels of the range.
According to him, $4500-$4800 are likely to act as levels for support for the range, below which correction to lows at $3850 might ensue again. The resistance to the upside are around $5900-$6000.
The resistance levels are also confirmed by the 38.2% level of the Fibonacci retracement from the highs above 10,500. The Fibonacci cluster support is around $3900, below which the 2018 lows of $3150 might be visited again.
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As for the rest of the crypto markets, the drop and bounce continues to be of higher proportions that Bitcoin. The violent price action in the last two days, visits, breaks below support violently. However, creeps back up almost instantly.
The $52 billion levels is acting as support at the moment after breaking below and almost reaching the bear levels of 2018 around $37 billion. A bounce to the mid of the range above $60 billion is likely.
Moreover, investors would look to accumulate in this range, before another bull run. However, a break-down could lead to long term bears in the crypto markets.