Bitcoin has been on a downward spiral since the news of Coinrail hack hit the headlines. However, in the last 12 hours, bitcoin has entered into a consolidation phase with the price oscillating between $6800 and $6600.
That’s an indication that the massive selling pressure that ensued after news of the attack came out has subsided. For people looking to trade in bitcoin in the next 24 hours, it is best to watch this range, for the next couple of hours.
If bitcoin drops below this price range and tests $6500, it will most likely be headed lower, with the next point of resistance being the psychological support level of $6000.
However, in case it breaks above $6900 in the next 12 hours, it could be all green in the next 24 hours, with the first profit target being $7720, a price level at which bitcoin has experienced some level of profit taking in the past.
In essence, for someone looking to trade bitcoin in the next 24 hours, the best decision would be to wait for the price to break out of this range. A range is usually indicative of asset accumulation and can break out in any direction. Watching the market orders at this point is critical too if you want to get a sense whether it is buyers or sellers accumulating bitcoin.
Like bitcoin, Ethereum has been on a downtrend in the last 24 hours due to the Coinrail hack. Looking at the 12-hour charts, we see that Ethereum is entering into a consolidation phase after yesterday’s sell-off.
That could either indicate that sellers are losing momentum, or that they are simply consolidating before pushing the price lower.
As such, to trade Ethereum in the next 24 hours, it is best to watch the price and how it behaves within this $540 – $500 price level. If by any chance it drops below this level in the next 12 hours or so, Ethereum could be headed lower, with $384 as the next major support level.
However, if it breaks above this range and trades above $550 in the next 12 hours, Ethereum could hit $603 in 24 hours. This is the first level of resistance along the 200- day moving average. A break above this could see it test $700 easily.
Both Bitcoin and Ethereum are in an accumulation phase, after a selloff that saw bitcoin lose close to 10% of its value.
That’s an indicator that the news might have been fully absorbed by the market, and it could head higher. However, prices could always break lower if investors are still jittery about getting in.
That’s because the market was still weak even before the hack, and volumes on major exchanges have been low for some time now.
As such, a savvy investor would be waiting on the sidelines for a new trend to form outside of this consolidation phase. Once confirmed, it will be safe to make a sell or buy order, with the next 24 hours, as your target exit point.
Disclaimer: This content is for information purposes only and is not intended as financial advice or any other advice. It is not an offer or solicitation to buy or sell nor is it meant as an endorsement or recommendation for any security. The information is general in nature and does not take into account your individual financial position. You should seek advice from a registered professional investment adviser and undertake due diligence before making investment decisions.