On the daily chart below, we can see that Bitcoin has been falling ever since it got to the strong 30K level, which is a key weekly support turned res
On the daily chart below, we can
see that Bitcoin has been falling ever since it got to the strong 30K level,
which is a key weekly support
turned resistance. The price consolidated for a bit just beneath
that level awaiting some fundamental catalyst to push it higher, but instead
started to get strong US data that sent BTC/USD lower. The consolidation formed
a symmetrical
triangle, that upon a breakout lower, saw the price falling quickly to the next support at 25231.
The moving
averages are now crossed to the downside confirming the bearish trend and the
red long period moving average should act as dynamic resistance going forward.
It’s also worth noting that the whole post-SVB collapse rally diverged with the MACD, so all else being equal, we
might see a deeper correction into the 21500 level.
On the 4
hour chart below, we can see that the selloff after the triangle breakout
stopped near the 25231 support where we got a bounce into the 38.2% Fibonacci
retracement level. The price started to range awaiting new
catalysts to push it in either direction. We got one last Tuesday when the US
Services PMI saw a huge beat to the expectations and sent
Bitcoin lower. The target for the sellers is now the 25231 support, but if the
data keeps beating forecasts, we should see much lower prices ahead.
On the 1 hour chart below, we can
see that BTCUSD broke below the bottom of the recent mini range and it may now
pull back to retest the support now turned resistance before another move
lower. In fact, we should see the sellers lean on that 26480 level with defined
risk just above it to target a fall into the 25231 support. The buyers, on the
other hand, may want to see the price to return back within the range to pile
in and target the 38.2% Fibonacci retracement level.
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