BTC/USD bears are finally getting exhausted and the extended bearish rally has lost its momentum to a great extent. Currently, the price is testing a major support level at 7475.4 and a nice bullish pin bar has formed right at the key support level. Though the aggressive price action traders might think this is the perfect opportunity to execute long orders considering the recent bearish rally, buying the pair at the current price level will be an immature act. A daily closing of the price below the current support level at 7475.4 will again refuel the bears in the market.
BTC/USD testing critical support level
From the above figure, you can clearly see the price is now testing a major support level in the daily chart. A clear break below the current support level at 7475.4 will ultimately lead this pair towards the next major support level at 5878.1. The professional cryptocurrency traders will be cautiously observing this level and any bullish price action confirmation signal will be an excellent opportunity to execute long orders. The first initial bullish target for the pair is at the major resistance level at 11807.1. This level is going to the provide a significant amount of selling pressure to this pair and shorting the pair with bearish price action confirmation signal will be the top priority of the day traders.
However, a daily closing of the price above the critical resistance level at 11807.1 will confirm the end of the current bearish rally. This will eventually lead this pair towards the next major resistance level at 19891.0. Prior to the extended bullish rally, the market is most likely to exhibit ranging movement near the minor support level. Moreover, companies like DataBroker DAO is expanding their services and the active number of participants in token sale program clearly reflects positive sentiment of cryptocurrency users. So the bulls will have some major catalyst to rally higher.
On the downside, we need to break below the current support level at 7475.4 to see some fresh selling activity. A clear break of the current support level will ultimately lead this pair toward the key support level at 5878.1. Clearing this support level will be extremely hard for the bitcoin bears since we have plenty of supportive candles. However, if the FED officials hike their interest rate with a dovish tone we might see a record low in the price of BTC/USD pair. But drastic rate hike from the FED officials is highly unlikely due to ongoing week performance in the U.S economy. Considering the technical and fundamental factors, it’s better to stay on the sideline until the market defines its directions.