The BTC/USD bulls tried to exhibit solid bullish momentum after hitting the critical support level at 6484.7. Though the bulls rallied significantly higher, the sellers took control of the market after the pair hit the major resistance level at 10018.4. Majority of the aggressive price action traders made a decent profit by shorting the pair after the formation of a bearish engulfing pattern in the daily chart. Currently, the pair is slowly heading towards the major support level at 6484.7. From that level, we might see some decent bullish bounce but setting pending buy orders at that level will be an immature act. However, the short traders can execute long orders with a tight stop below that support level.
From the above figure, you can clearly see the bulls are losing control of the market. The recent bearish fall is expected to be completed near the major support level at 6484.7. Any bullish price action confirmation signal near that critical support level will be an excellent opportunity to execute long orders. If the support level at 6484.7 manages to exhibit strong bullish momentum, the pair will eventually lead towards the next resistance level at 10018.4.
A daily closing of the price above that level will eventually lead this pair towards the next critical resistance level at 11876.5. This level is very crucial since we have plenty of resistance candles just above this level and the buyers will have to work hard to clear out this resistance.
According to Nihilum project manager Jonas Rapsikevičius:
the situation in the cryptocurrency trading market is quite clear if you have closed the deal at the downfall of the market, trade operations are profitable. However, the only problem is to forecast the downfall point, because if a trader closed the deal at the wrong moment he could receive negative returns from the operation. Therefore, the idea of cloud mining contracts and cloud mining services is seen as more and more attractive because there is no rock bottom in the process. The cryptocurrency mining is always profitable. The only difference is that the process profitability changes together with the cryptocurrency value.
On the downside, a daily closing of the price below the major support level at 6484.7 will eventually lead this pair towards the key support level at 5428.2. Most of the leading cryptocurrency investors will be cautiously observing this level since the market might start its second extended bullish rally from this level. However, if the price breaks below that support level, the BTC/USD bulls will be in extreme trouble. This will eventually lead this pair towards the next major support level at 4444.6.
Fundamentally the US dollar is exhibiting strong bullish momentum in the global market and if the FED officials hike their interest rate, the larger decline is expected in the BTC/USD pair. However, a rate hike followed by dovish statement will neutralize the current bearish threat imposed on this pair. From the starting of the next trading week, the pair is most likely to fall for few more days until it reaches the major support level. Considering the technical and fundamental factors, buying the pair at the current price level will be an immature act. We will wait in the sideline until we get a clear signal in the market.