Bitcoin price may break upward channel it is in despite OKEx scandal

Earlier this week, the price of Bitcoin (BTC) entered a bullish phase to $ 11,725, following the news last week that Square bought $ 4,709 worth of BTC, but since then the price has fallen back into a lateral range (with little variation).

According Coinmarketcap, currently the market capitalization of Bitcoin is USD 196,871,013,843.

Several rejections close to $ 11,500 and the recent news that OKEx has stopped all withdrawals while its CEO “cooperates” with an investigation being carried out by the Chinese authorities is also affecting investor sentiment and the price of Bitcoin.

Snapshot of the daily performance of the cryptocurrency market. Source
: Coin360

The wave of negative news has turned the price of most altcoins in the red again and it has extinguished the newly found bullish momentum that the price of Bitcoin was displaying.

The daily time frame states that losing $ 11,200 could open the door for the price to retest $ 11,100, a level that resides in a VPVR gap and would likely give way to a further decline to $ 10,900.

In accordance with Michael van de Poppe de Cointelegraph:

“Now significant support at $ 11,000 is a must-have level to resume bullish momentum, which may struggle to overcome current levels, as new coronavirus closes are scaring investors.”

Van de Poppe suggests that if Bitcoin loses the $ 11,000 support there is a chance that the price will drop below $ 10,000 up to the 200-MA of $ 9,750 which is close to a CME gap.

Although the current price action is disappointing for bulls who want to see a retest of $ 12K, the naked eye shows that there are multiple factors that play in favor of the price of Bitcoin.

Recent acquisitions of BTC by MicroStrategy, Square Y Stone Ridge they are positive, especially considering the current economic uncertainties that exist as a result of the COVID-19 pandemic.

Further, volumes are increasing again on multiple BTC futures exchanges and on Friday Cointelegraph reported that Bitcoin exchange Bakkt hit a new BTC delivery record.

The price of Bitcoin has also largely ignored most of the negative news of the last two months and has remained above the $ 10,000 level, since buyers show a constant interest in buying near this level.

Support levels are expected to be retested

It is also worth noting that it has only been a week and a half since the price of Bitcoin broke out of a 24-day compression phase, which was followed by the most recent break, down to $ 11,750.

BTC / USDT daily chart. Source: TradingView

Since the bullish breakout, the price has retested the $ 11,200 level as support, but a deeper pullback to 20-MA to test $ 11,000 as support would not be out of the ordinary. Even a drop to the $ 10,650 level near the 100-MA would simply be a repeat of the downtrend line from the 2020 high at $ 12,467.

In the short term, it seems likely that Bitcoin price trading will fall in the area of ​​$ 11,400 to $ 9,700, a range that may become a paradise for swing traders.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you must carry out your own research when making a decision.

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