With the bitcoin price at $8400 the question arises, is it a bounce or a breather before breaking a major support level?
On a daily chart, the VPVR indicates that there is a significant volume within this price range in between the 200-day Moving Average and weekly EMA ribbon. BTC tested the ribbon twice in the past week and once again it was proven to be a significant support level, as it was able to hold the price above. As mentioned in our previous issue, bitcoin has never broken above the weekly EMA ribbon without a massive and continuous bull run and this is still valid today. However, it does not mean that bitcoin price is safe from falling further. If breaking below the $7700, BTC is expected to show a significant drop, at least till the next support at $7200.
In bullish turn of events, if bitcoin can break and close above the 200-day MA at $8400, we can assume the price to rapidly recover after it’s recent fall.
On a daily chart, the VPVR indicates that there is a significant volume within this price range in between the 200-day Moving Average and weekly EMA ribbon. BTC tested the ribbon twice in the past week and once again it was proven to be a significant support level, as it was able to hold the price above. As mentioned in our previous issue, bitcoin has never broken above the weekly EMA ribbon without a massive and continuous bull run and this is still valid today. However, it does not mean that bitcoin price is safe from falling further. If breaking below the $7700, BTC is expected to show a significant drop, at least till the next support at $7200.
In bullish turn of events, if bitcoin can break and close above the 200-day MA at $8400, we can assume the price to rapidly recover after it’s recent fall.