Bitcoin saw a major crash last week after FUD from the South Korean Market and the market has not been able to find its feet after that. After crashing to $12,000 last week, it regained to $14,500. By the end of the week, South Korean Justice Minister announced plans to Ban Cryptocurrencies completely in the country which started the Bear run. Though the ban was refuted, the fall continued throughout the weekend.
Bitcoin had a major support at $12,000 which was broken yesterday. In fact, Bitcoin went below $10,000 to a low of $9,800 before rebounding. Bitcoin is currently being traded just above $10,000. This is a major psychological blow to Bitcoin which reached an all-time high of $20,000 last month.
The Bear run after touching $20,000 has parallel support and resistance which is shown in the chart. If Bitcoin goes below $10,000, the next support is at $5,000. But that is too low and expect a new support to be formed before that between $7,000 and $8,000.
Looking at the charts, there is enough volume in the market that it won’t go below $10,000. But any negative market news can change that. If you’re holding Bitcoin, set a stop-loss below $10,000 at around $9,700 and if you’re looking to get into the market, this is the best time to enter. The last time Bitcoin was $10,000, it was two months back.
Bitcoin rebound will happen. When that happens, make sure you’re in it. The most important step to take while trading at turbulent times like this is to use a stop-loss. About 40% of the market was wiped off in the last two days. Our readers who took our advice with stop-loss made through it with not more than 10-20% in losses.