BIT/USDT, after creating a swing high of $0.6482, is in a downtrend since February. Just after that, bulls have shown weakness, and the bears are taking advantage by aggressive selling 

 

• BIT/USDT is up 0.07% since yesterday indicating less volatility
• BIT/USDT is trading on important daily support which is a defending area for the bulls.

 

BIT/USDT is trading at $0.4052 after it saw a dump from its daily support level of $0.4648. This downfall of 12% was due to the fact that the bulls were unable to defend this support level which triggered panic selling. A Marubozu candle was formed on the daily chart as it broke the support level. This indicated that there was massive selling which destroyed the buyers.

 

The daily chart  indicates that the price is at a crucial level

 

 

 

 

As per the price action on the daily chart, a swing was formed back in February at $0.682. After that, a Head and shoulder pattern was observed which showed that the bulls were getting weak. Just after the breakdown  of this pattern, the price dropped to the daily support at $0.468. After taking a pullback, the price kept on moving sideways for almost 3 months and the bulls were unable to push the price above the Daily 200 EMA. This gave bears the confidence to sell on a large scale which affected the value of this digital asset.

 

Although the overall trend is bearish, Investors must keep in mind that the price is resting in the demand zone. Any signs of reversals might trigger the bulls and they can turn the tides at any moment.

 

The Short Term Chart is showing weakness in the market.

 

 

On the 4H Time frame, signs of weakness are observed. The increased  volume in the red candles represents that sellers are dumping in large quantities. Buying Volume is less as the buyers are now scared of the falling prices. Price is trading on a crucial zone and a breakdown would plunge the prices another 16% toward the next support at $0.3387. On the upside, the buyers will have to face the resistance at $0.4648 along with the 200 EMA in order to change the trend.

 

RSI: The RSI indicator is currently at 23.72 and is representing that the market is very weak as well as oversold

MACD: The MACD indicator is below the 0 line which is a sign of negative momentum expressing bearish market conditions.

200 EMA: As it is observed, on the 4hr, the price is trading below the 200 EMA(exponential moving average) which acts as a significant resistance. This is a clear indication of a downtrend where the sellers are in control and for a trend reversal, the price must break and trade above the 200 EMA.

 

Technical levels

Support Levels: $0.4083 – Support 1

$0.3379 – Support 2

Current Price: $0.4052

Resistance Levels: $0.4648 – Resistance 1

 $0.5267 – Resistance 2

 

Conclusion

BITDAO is in the control of bears and the bulls will have to try very hard to escape from the grip. Price is at a critical support level and a breakdown will trigger a massive downfall. Investors are watching this level as a potential opportunity to buy as the price is in a demand zone. The market has taken a small pause after a big downfall. There is fear amongst the buyers due to the falling prices. The coming time will decide whether BITDAO will pump or dump from here.