Bitcoin [BTC] Breaks Below Key Support Level Creating New 2018 Low

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Bitcoin Daily Chart – Source:

There had been slightly more bullish conditions in the cryptocurrency market recently.

Bitcoin had reached a support level at $3300 and continued to respect this support level for around one week. Although there were drops below, each drop was followed up with a rise back above the level.

However, yesterday price action dropped below the support level and closed below this point. The drop below has resulted in price forming a new 2018 low around $3210.

Today’s candle is so far forming a Doji. A Doji candle is a candle where the open and close are around the same point and typically reflects uncertainty from the side of traders.

Although the outlook is far more bearish after the price has dropped below support, traders may be unwilling to sharply sell-off from this point as support is likely expected around $3000.

Bitcoin Weekly Chart – Source:

$3000 is the next important support level to monitor for Bitcoin. It is both an area of significant trading activity during 2017 and is a key psychological point for traders.

With price action currently trading near 2018 lows, a drop to sub-$3k levels has become a greater possibility.

Bitcoin Hourly Chart – Source:

The hourly chart shows the drop below support in closer detail. Bitcoin broke from the series of higher lows it had been forming to below the support line at $3300.

It currently has started trading in a range from around $3250 to $3275.

Key Takeaways:

  • Bitcoin broke below key support at $3300 and closed below.
  • Outlook is far more bearish after the close below $3300 and Bitcoin has formed a new 2018 low near $3210.
  • Today’s candle is forming a Doji which reflects uncertainty from traders. Traders are likely anticipating support from the $3000 level. A drop below $3000 has increased in likelihood given the price drop below support.
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