- Summary:
- BTCUSD continues to face downward pressure as the support levels continue to see relentless testing from Bitcoin sellers.
Bitcoin – BTCUSD is still under pressure as the effects of the fall in the price of the number one cryptocurrency continue to be felt across markets. The crypto markets have entered what is colloquially called the “altcoins season”. This is when altcoins that are paired with Bitcoin experience a price surge. This does not necessarily have to do with the fundamentals of the altcoins, but more with the price action of Bitcoin in its pairing with the USD. So we can safely say that many altcoins pairings with BTC have an inverse correlation with BTCUSD.
Technical Outlook for Bitcoin
It is usually an amazing thing to see those prophesying $50,000 or $100,000 Bitcoin prices run for cover whenever the bearish technical playbook for BTCUSD knocks off these predictions. We are now starting to see bearish sentiment on BTC getting louder by the day.
BTCUSD continues to face downward pressure as price candles on the daily chart show persistent attempts by bears to force prices lower. The support level of 8289 has so far held firm, but for how long?
If we consider the measured move of the descending triangle, price should at least hit the 23.6% Fibonacci retracement price of 7071 before stalling. Therefore, I would expect a break of the present intermediate support at 8289 to give way under continued pressure, and to make a dash for this level.
Bitcoin has to cross above the $13,000 for a switch to bullish sentiment to be affirmed. Bear in mind that Bitcoin remains in a downtrend as far as the long-term charts go. This price move is therefore a fulfillment of this pattern and any rallies should be seen as just that: rallies to probable selling points.