Bitcoin Bears Looking for A break Below 8,310
Bitcoin prices fell below 44,000 today, after yesterday’s record-breaking performance that sent BTCUSD above 48,000 for the first time ever. Following the 20% gain experienced in the last week, Bitcoin prices shed more than $100 billion in market capitalization as sellers initiated a profit-taking sequence to lock in profits garnered so far.
The surge in Bitcoin prices experienced on Monday triggered a move that saw the BTCUSD pair rise 19.45%. Liquidation data from bybt indicates that the liquidations featured a large percentage of long positions, totaling $1.17 billion. Even as the Musk effect dies down, the CEO of GE Mary Barra indicates that the company would continue evaluating BTC strictly for payment purposes. The CEO also added that GE had no plans to place some of its balances in Bitcoin.
The doji candle of yesterday following Monday’s surge was a warning that the upsurge had probably stalled. Wednesday’s price move has confirmed this, setting up the evening star pattern. If the daily candle closes as it is (or slightly lower), the pattern is complete and sets the tone for further bearish action on the pair, targeting the 8 January high at 41912.08. Below this level, further support lies at
40721.85 (361.8% Fibonacci extension from the 17 March2020 low to the 17 August 2020 high) and 40137.27. Other targets below 40,000 include 38988.48 (341.4% Fibo extension) and 37895.67.
On the other hand, lack of follow-through selling on the back of the completion of the pattern allows the bulls to make another attempt at 45972.96 initially (423.6% Fibonacci extension) before the all-time high at 48216.09 comes into play.
