There has been a sharp selloff in the BTC/USD pair after it hit the critical resistance level at 17290.53.Most of the professional investors closed their long orders after the formation of the bearish pin bar near that major resistance level. Though the pair found some solid support at 10974.1 eventually the sellers took control of this market. Currently, the price is testing a major support level at 6596.20 and the optimistic bitcoin buyers are looking for clear bullish price action signal to execute long orders.
BTC/USD daily chart analysis
Figure: BTC/USD testing major support level in the daily chart
From the above figure, you can clearly see that bulls are trying hard to take control of this market. If the buyers manage to clear the critical resistance level at 8431.27, the sellers will have a tough time. But breaking this major resistance level will be a tough task for the bulls since this level is also supported by 38.2% bearish retracement level. (Drawn from the high of 5th March 2018 to the low of 5th April 2018).A daily closing of the price above the critical resistance level at 8431.27 will ultimately lead this pair towards the 50% retracement level. Most of the scalpers will be looking for short-term selling opportunity near the critical resistance level at 9019.04.If the buyers manage to break the 50% retracement level the bulls will have to face the final resistance level at 61.8% retracement level to establish fresh bullish momentum in the global market.
The leading investors will be looking for bearish price action confirmation signal near the critical resistance level at 9600.82 to execute fresh short orders. Considering the massive cluster of resistance, the leading cryptocurrency investors are not willing to go long until the bulls establish solid ground. According to Matej Michalko, co-founder of ALAX.io and CEO of DECENT, I've been involved in Bitcoin since the beginning, even mining it from my laptop back in 2011. The price of BTC is constantly fluctuating, but in the long run, these daily ups and downs aren't significant. The underlying technology, blockchain, is really what impressed me and I believe that it will disrupt industry practices by providing an adaptable, decentralized solution to many issues we see in the world today. Bitcoin is still the king of crypto, and as long as there is demand for decentralized currencies, it will remain viable. This statement clearly represents bullish outlook of the market.
On the downside, we need to clear the most recent support level at 6596.19 to establish fresh selling pressure. A daily closing of the price below the critical support level at 6596.82 level will ultimately lead this pair towards the next major support level at 6052.42.This level is very crucial for the long-term BTC/USD buyers since a valid break of that support level will bring extensive selling pressure which will eventually lead this pair towards the next major support level at 5492.38.
Considering the technical parameters the BTC/USD pair has most likely completed has bearish fall. However, we need to clear the critical resistance level at 61.8% before we see some bullish fireworks in this pair.