The optimistic bitcoin bulls have been suffering from extreme level of uncertainty after bears crashed the market from a record high at 19821.0. Though the bears got exhausted near the major support level at 11652.1, eventually it breached that critical support level securing a new low in the global market. However, the BTC/USD pair finally found some decent support near the low 6th February 2018.Most of the aggressive buyers went long after the bullish pin bar formation right at the critical support level at 6599.7.However, the optimistic bitcoins bulls waited for a clear bullish price action confirmation signal to execute fresh long on this falling market.
BTC/USD daily chart analysis
Figure: BTC/USD bulls establishing solid grounds
From the above figure, you can clearly see the bulls have taken control over the market after hitting the major support level at 6552.5.The conservative price action traders executed their long orders after the pair breached the minor resistance level at 7355.2.Currently, the pair is slowly heading towards the major resistance level at 11652.1.This level is going to provide a significant amount of selling pressure to this pair and we might see a triple top formation.
However, a daily closing of the price above the critical resistance level at 11652.1 will confirm the temporary bottom formation near the 6552.5 level. This will eventually refuel the bitcoin bulls which will push this pair towards the next major resistance level at 17271.2.This level might create temporary selling pressure but the major resistance level lies at 19821.0 which is also the record of high bitcoin so far. Moreover, the leading price action traders in the cryptocurrency industry are considering the recent fall as a bearish correction for the extended bullish rally of BTC/USD pair.
On the downside, the bears need to take out the critical support level at 6552.5 to establish fresh selling pressure to this pair. A daily closing of the price below the critical support level at 6552.5 will ultimately lead this pair towards the next major support level at 4768.6.From that level, we might see some decent bullish bounce and the sellers will have to establish extreme momentum to clear out that critical resistance level. Any bullish price action confirmation signal at that level will be an excellent opportunity to execute long orders. Considering the overall market sentiment and technical parameters, it's better to look for buying opportunity in the BTC/USD pair.