Crisis before the midday diving has emerged, analysts say the test has just begun

Source: Shallot Blockchain

The mainstream currency represented by bitcoin in midday quickly fell. OKEx market shows that bitcoin quickly fell below the 7000 integer mark from above 7300. The lowest intraday fell below 6900, the lowest since April 6. As of the time of publication, Bitcoin temporarily reported 6928 USDT, which fell more than 5% in the day, and almost all the gains in the week were taken.

After experiencing a sustained rebound for nearly three weeks, Bitcoin has achieved a considerable increase from the low point of the year hit on March 13th, although it is still larger than the high point in mid-February this year. However, after Bitcoin returned to 7000, bitcoin has brought the already overcast year line back to the status of the Yang line, but this wave of corrections again undermined the optimism that has been fermenting recently.

However, this wave of callbacks is actually not without warning. Yesterday, the movement of the giant whale on the chain has actually revealed the sign of the profit of the bulls. According to the data monitored and published by @whale_alert, about 15 hours ago, that is, about 3 hours from yesterday evening to early morning today, there were 6 huge Bitcoin transfers on the chain, and all the destinations of these transfers were They are all mainstream exchanges on the market, including Binance, OKEx, and Bitstamp. The total value of these six transfers is as high as 80 million US dollars, and the largest one is a 5000 bitcoin transfer. OKEx Exchange.

Although the OKEx exchange account received two large transfers of 3500 bitcoins and 1500 bitcoins shortly after receiving the huge transfer, this does not mean that the giant whale has abandoned the "sell" plan. Instead, it is more like the account is trying to split the transaction to reduce the potential adverse effects of the panic sentiment that may be triggered by this huge transfer to the exchange.

In addition, some market analysts have also thrown out some clear early warning signals in advance. NewsBTC analyst Yashu Gola pointed out earlier this week that although Bitcoin has become a clear rising wedge structure in the past period, and the trend of rising lows seems to have no signs of stopping, but mainstream exchanges The volume has not effectively followed up the price increase and continued to pick up. Instead, there has been a very obvious sustained contraction in this wave of increase, which is not optimistic about the continuation of the upward trend. Yashu said that the increase in this situation is not reliable. Once the price falls below the wedge lower rail at a certain point, it is likely that the market will be greeted by a rapid decline with considerable strength. According to the technical pattern, Once the breakout occurs, bitcoin may fall back to around $ 5,000 in a very short time.

The TD9 indicator created by Thomas Demark, regarded as a "market predictor", also gave a new round of bearish signals in the middle of the week. The indicator has accurately predicted the emergence of multiple rounds of large-scale unilateral market inflection points in Bitcoin history The timing of the latest wonderful performance was precisely when bitcoin rose to around 10500 in mid-February.

Some traders bluntly stated that Bitcoin's performance in the most recent period is very similar to the beginning of the year-long bear market in 2018, so at present we are probably not at the starting line of the so-called next round of bull market. On the contrary, it may now be the last chance to leave before the bear market arrives.

In response to this round of quick callbacks, OKEx analysts pointed out that the bearish wedge of the currency price test yesterday showed signs of a break, and the market is gradually releasing weak signals. Given the gradual increase in hourly selling volume, the probability of a break is also effective With a further increase, if the trend cannot regain $ 7,000 in the next 8 to 12 hours, you can confirm to a certain extent the end of the previous stage of the rebound, a new round of bottoming market or start, investors should pay attention to the currency in the near future Where prices can stabilize, among them, $ 6600, $ 6150 and $ 5850 are potential support levels.

Market analyst Simplified Currency Market pointed out that the rapid callback of bitcoin within the day caused the price to return to the 4 hour and 50 cycle moving average for a whole week, so that the previous high sideways efforts of the previous trading days were "burnt", and the short-term technical graphics In other words, if the price falls back below the 4-hour and 50-period moving average, if it fails to rebound quickly back to this important dynamic technical reference, then the ultra-short-level downtrend will be completed directly, with the shock in the past three days. A series of support references that overlap around 7000, such as the lower edge of the body and the integer psychological barrier, have been destroyed. A wave of seemingly not very strong decline may have a destructive effect on the market that exceeds everyone's imagination. In addition, as this wave of rapid callbacks comes out, the suspense of the completion of the four consecutive suns on the weekly line rises sharply. If the price fails to hold the 6778 first line of the weekly line when the line is closed this week, then Bitcoin's recent round of rally will be ended. After the destruction of the 6800-7000 support-intensive area, the market is likely to usher in a retracement of 6150 and even 5500 integer positions in a short time. Therefore, a small dive in midday is actually equivalent to "forcing" the market to enter the stage of a long and short battle.