8/28/2019 Trading Bitcoin: $800 Daily Drop, Now What?

| Investitute

Become a Member Login

Trading Bitcoin: $800

Daily Drop, Now What?
 August 21, 2019  CJ Reichel

bears Bitcoin BTC bulls crypto

$800 Daily Drop, Now What?

After an $800 daily drop, Bitcoin is now hovering at

$10k. On the daily chart above, Bitcoin has undergone
a price ip to a red 1 candle. As of now, there is strong
support at the 5-digit psychological level of $10k. That
being said, the last line of defense for the bulls will be
$9.5k. This price also aligns with the 0.382 support
bonacci line as well as the sequential setup trend
line. Furthermore, the 128MA (green)is approaching
https://investitute.com/trading-bitcoin-800-daily-drop-now-what/ 1/6
8/28/2019 Trading Bitcoin: $800 Daily Drop, Now What? | Investitute

support at $9.5k as well. Overall, there is a large

con uence of support at $9.5k which means if price
should fall below it, Bitcoin may experience an
additional 20% drop from $9.5k. This would take us
into the $7k-$9k price region.

Many Bitcoin traders are familiar with the descending

triangle which occurred at $6k after 2017’s parabolic
run up. Moreover, price is entering a similar formation
with a base at $9.5k after the spring parabolic rally to
$14k.

4 Hour

Bitcoin’s 4 hour chart above is currently on a green 7

of 9 candle. Therefore, in 8 hours Bitcoin will likely
reach a red 9 candle and enter a countdown phase.
Overall, Bitcoin’s 4-hour chart is severely bearish for
the time being.

Cryptocurrency News

Binance, the world’s largest cryptocurrency exchange,

was banned in the US early this year for not
conforming to proper KYC & AML protocol.
 But now,

https://investitute.com/trading-bitcoin-800-daily-drop-now-what/ 2/6
8/28/2019 Trading Bitcoin: $800 Daily Drop, Now What? | Investitute

Binance has con rmed they will launch a separate

branch which will conform to regulations and serve US
customers. This may lead Binance to add at currency
pairings, a new exploration for the crypto-native
platform. Overall, US crypto exchanges such as
Coinbase, Kraken, and Gemini will become less
relevant once Binance US is live.

Conclusion

After an $800 daily drop, the bulls last line of defense

is $9.5k. Most notably, the more times price tests
support, the weaker that support level becomes.
Bitcoin faces harsh resistance at the descending trend
line and sequential setup trend line at $11.3k. Until the
bulls can create a higher high, the bears are in control
of the macro trend. In the interim, look for another
downward test of $10k. If price closes below $10k it is
probable that support at $9.5k will not hold.

https://investitute.com/trading-bitcoin-800-daily-drop-now-what/ 3/6
8/28/2019 Trading Bitcoin: $800 Daily Drop, Now What? | Investitute

BTCUSD 1m 30m 1h D

Bitcoin / U.S. Dollar · D · BITSTAMP O10171.39 H10171.39 L10117.82 C10142.38 −24.91 (−0.25%)
Vol (20) 83 6.741K

BTCUSD Chart by TradingView

Disclaimer: The author of the article hodls Bitcoin.  

Disclaimer

The information contained in this Article is not intended to be a

source of advice or investment analysis with respect to the material

presented, and the information contained in this Article does not

constitute investment advice. The information is intended to be used

and must be used for informational purposes only. The ideas,

strategies, reports, Articles and other information expressed in this

Article are our opinions and should never be used

 without rst

https://investitute.com/trading-bitcoin-800-daily-drop-now-what/ 4/6
8/28/2019 Trading Bitcoin: $800 Daily Drop, Now What? | Investitute

assessing your own personal and nancial situation, or without

consulting a nancial professional. Readers should be aware that

trading tokens and all other nancial instruments involves risk. Past

performance is no guarantee of future results, and we make no

representation that any reader of this Article or any other person will

or is likely to achieve similar results.

Any views or opinions represented in this Article are personal and

belong solely to Investitute and do not represent those of people or

companies that Investitute and its a liates may or may not be

associated with in a professional or personal capacity, unless explicitly

stated. Furthermore, Investitute, and/or its a liates, including

contributors to the ideas, strategies, reports, articles and other

information in this Article, may have a nancial interest in one or more

of the tokens mentioned or the company granting or issuing the

token, or otherwise have a business relationship with such company.

While we have made every attempt to ensure that the information

contained in this Article is correct, Investitute is not responsible for

any errors or omissions, or for the results obtained from the use of

this information. All information in this Article is provided “as is” and

without warranty of any kind, express or implied. In no event shall

Investitute be liable to you or anyone else for any decision made or

action taken in reliance on the information in this Article or for any

special, direct, indirect, consequential, or incidental damages or any

damages whatsoever, whether in an action of contract, negligence or

other tort, arising out of or in connection with this Article or the

information contained in this Article. Investitute reserves the right to

make additions, deletions, or modi cations to the contents on this

Article at any time without prior notice.

Related Posts


https://investitute.com/trading-bitcoin-800-daily-drop-now-what/ 5/6
8/28/2019 Trading Bitcoin: $800 Daily Drop, Now What? | Investitute

BTC Hits New

All-Time Highs
in Less Than 12
Hours Trading Bitcoin: View from the
At around 8:30 ET END OF BULL Top: The most
yesterday, Bitcoin MARKET?? interesting ICOs
(BTC) surpassed END OF BULL from the North
the $10,000 price MARKET?? In American
level for the rst… yesterday's Bitcoin
article, we Conference

https://investitute.com/trading-bitcoin-800-daily-drop-now-what/ 6/6