May 15, 2021

Trader told how Bitcoin will behave after correction

Practicing trader and ForkLog Hub resident Pavel Gromov talks about the current market situation.

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Like assumed in a previous review, consolidationBitcoin above $ 7,800 led the main cryptocurrency above $ 8,000 in a few hours. Reality exceeded expectations, and during the day we saw Bitcoin at $ 9400.

Bitcoin price breaks $ 9,000 mark

After that, there was a correction to $ 8500, where the asset was met by buyers. By the evening of April 30, the price stabilized in the range of $ 8650- $ 8850, where it is at the time of writing.

Market capitalization returned to the values ​​of early March. The consequences of the collapse of March 12-13 in the market can be considered eliminated.

Immediately after the collapse, I gave a long-term forecastby bitcoin. He completely paid off - since then, bitcoin has doubled. There is a correlation with the stock market with its growth. Cryptocurrencies ignore the negative, like negative oil prices.

Now the situation may change. Above $ 8000, those who sold bitcoin below $ 7000, the market crowd, began to return to the market. Logic and rationality in the actions of the crowd are absent. Panic sales and plums are likely.

Growth to $ 8000 was organic, and the movement of $ 8000- $ 9400 has already adjusted in half. I think that without some extreme negative bitcoin below $ 7,800- $ 8,000, we will not see soon.

There were no shocks in the traditional market. Reports from IT giants did not bring any special surprises - the general mood is positive, although Amazon showed a profit below expectations.

S&P 500 came close to 3000, although improvements inthe real economy is missing. Company reports show a fall in all significant indicators. And these are only reports for the first quarter, in which quarantine and other restrictions began in March. Obviously, reports for the second quarter will be much worse.

Over 30 million Americans have applied for unemployment benefits over the past 6 weeks. But the stock market has less and less connection with the real economy.

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The main reason for the growth is the injection of money into the economy. And the reason for the growth is not of particular importance and will always be found.

Today, the market is waiting for the report of oil companies. The situation there may be between “bad” and “very bad”. But I won’t be surprised if the S&P 500 remains above 2900.

If bitcoin at the American session or before it begins to consolidate above $ 8800, then go to $ 9000- $ 9200 with a possible test of $ 9400. If not, we stay today and at the weekend in the range of $ 8500- $ 8800.

What do the graphs say?

On April 30, Bitcoin set a maximum at $ 9,460, slightly not reaching the expected $ 9,600.

Trader told how Bitcoin will behave after correction

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From $ 9,460 profit-taking followed. The price has adjusted to the mark of $ 8401.

The closest support level at the moment is$ 8749 Fixation under this level for a long time threatens buyers with a decline to $ 8588. If $ 8588 does not survive, then we can expect a decline in the zone of $ 8000- $ 8200.

Trader told how Bitcoin will behave after correction

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The main resistance zone is $ 8956-9020. As soon as buyers can gain a foothold higher, growth will continue to resistance at $ 9400- $ 9600.

On April 30, BTC tested the upper boundary of the medium-term downward channel.

Trader told how Bitcoin will behave after correction

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The resistance was the level of $ 9460, from which there were large fixations. The first level of support at $ 8401 buyers retained. The $ 8400- $ 8600 range is now a key support area.

Trader told how Bitcoin will behave after correction

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If buyers can not hold it, then the decline will continue to the level of $ 8000- $ 8238.

Trader told how Bitcoin will behave after correction

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The main resistance on the daily timeframe is the zone of $ 9000- $ 9165.

Trader told how Bitcoin will behave after correction

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Only if we fix above this mark, we can talk about continued growth to the previous resistance ($ 9460). In the event of a breakdown of $ 9,460, medium-term goals lie above $ 10,000.

Trader told how Bitcoin will behave after correction

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Attention!

Financial market forecasts are privateopinion of their authors. Current analysis is not a guide to trade. ForkLog is not responsible for the results of work that may arise when using trading recommendations from the submitted reviews.