According to Binance Changpeng Zhao, “bitcoin has been oversold”. He recently made the aforementioned statement during the Binance Blockchain Week event which is currently being held in Singapore (January 19 – 22).
However, appears to disregard this alleged oversold condition and has traded lower over the weekend, testing the key support at $3500.
Currently trading around 3550, the pair has rebounded slightly after testing support at 3500 and is now showing a form of divergence: the is making a higher low while the price is making a .
This type of divergence is not as strong as the normal one (price is making a lower low and oscillator is making a higher low), but coupled with the at 3500, which is a , it can trigger upside movement.
The triangle is broken to the downside, so before we can see any upside action, the price must return above the recently . If that happens, we could see a climb into the 3700 area.
Support zone: 3500
Resistance zone: followed by 200 (4-hour charts) and 3700 – 3750
Most likely scenario: if 3500 holds, we expect a climb into 200 during the days to come
Alternate scenario: break of (3500) and move into 3400
Published at Mon, 21 Jan 2019 17:15:13 +0000
