A practicing trader Дмитрий Перепелкин explains the current market situation.
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After Bitcoin’s price fell from $12,000 to $10,000, the $10,000 support level held, as shown in the chart below.
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There was intense buying pressure around the $10,000 level, as the price chart shows four-hour candles wicking down to around $9,800, but the candles closed above $10,000.
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The chart below also shows how large buy limit orders were positioned, precisely in the $9,500-$10,000 range, which further confirms the importance of this price zone.
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After Bitcoin rose to $10,700, the next milestone is $11,000. However, judging by the open buy limit orders for the BTC/USDT pair, the main resistance could be at $12,000. Currently, there is no large concentration of sell orders at the $11,000 level.
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Note that Bitcoin price has moved beyond the upper boundary of the “Trading Channel” pattern. This is a bullish signal in addition to the fact that the $10,000 level held despite the rapid price drop.
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An interesting picture is emerging on the BNB/USDT chart. Against a background of several positive developments, such as launch of Binance Visa with cashback, and staking of BNB as part of developing its own DeFi product, the price of BNB showed rapid growth and set a new price record for 2020 — $33.
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BNB is currently undergoing a fairly expected correction after a meteoric rise. The important price threshold is the $25-$26 support zone. Against a backdrop of BTC’s ascent, a rise in BNB from the $26 level is quite plausible.
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Note how the price in the ZRX/USDT pair is testing a sloped support line, the formation of which began back in June 2020. As we can see, ZRX has bounced off the sloped support several times and continued to rise.
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A break of the support from above would signal further declines. However, given BTC’s uptrend (the market’s main locomotive), and the resilience of ZRX’s support level, a rise in ZRX from the current level is quite likely.
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