In our Bitcoin analysis yesterday, we mentioned that Bitcoin crashed below $8,000, but was able to hold on to its key resistance at $7,800. But a few hours after that, Bitcoin crashed below the key resistance at $7,800 and went to a low of $7,500.
Now that the support has been broken, Bitcoin is temporarily sticking with the long-term trend-line which has been around for months. There are multiple instances in the past where Bitcoin has fallen below this trend line. But every single time, there was a hard rebound back to this trend line.
If Bitcoin goes below this trend line, the next support is at $6,000. But the changes are, a rebound will happen before that and it is not clear at which level it would happen.
When the rebound occurs, it would move by roughly 10% in 24 hours. Combine that with a 100x leverage on Bitmex for profits of up to 10x your initial capital. But remember, this is an extremely risky move and does not always work.
There’s also a chance that Bitcoin will stick to the trend line and will rebound without a crash. Weekends are usually the most active times for Cryptocurrency market and look out closely for new opportunities.