BTC/USD Slips to Month-to-month Low, Seeks Help

Bitcoin (BTC/USD) Worth Outlook:

Bitcoin Worth Forecast: BTC/USD Slips to Month-to-month Low, Seeks Help

The biggest cryptocurrency by market cap, Bitcoin, fell to a recent month-to-month low on Wednesday because it slipped beneath $18,000 for the primary time since late November. Bulls have been fast to react, nevertheless, and BTC/USD enjoys a protracted decrease wick on the every day candle because of this. Additional nonetheless, the brand new month-to-month low of $17,656 is above the November low which critically permits for the collection of higher-highs and higher-lows to proceed.

Bitcoin (BTC/USD) Worth Chart: Every day Time Body (Could 2020 – December 2020)

Consequently, the outlook for Bitcoin stays encouraging in my opinion. Whereas current losses shouldn’t go unnoticed, consolidation could also be wholesome on condition that the coin trades narrowly beneath document ranges and has surged greater than 155% within the year-to-date.

Bitcoin (BTC/USD) Worth Chart: 1 – Hour Time Body (November 2020 – December 2020)

That being mentioned, a break beneath the November lows would quantity to a severe technical blow and will open the door to additional losses. Thus, $16,250 could stand because the “line within the sand” at this stage. Fortunately for bulls, varied areas of potential help exist between the present buying and selling worth and $16,250. First is the ascending trendline projection drawn off the November and December lows, adopted by the January 2018 excessive close to $17,220.

Ought to each ranges fail to buoy worth, losses may lengthen decrease and threaten the broader Bitcoin rally that has unfolded all through 2020. There are instances to be made for each bullish and bearish sides of the cryptocurrency, however the dominant pattern stays larger – albeit current losses have put it in danger.

–Written by Peter Hanks, Strategist for DailyFX.com

Contact and comply with Peter on Twitter @PeterHanksFX