BTC/USD in the consolidation phase
Technically speaking, last week Bitcoin created an important bearish step towards the test of a very important support around the $7,500 mark. The price action finally broke below the 200 DMA (the light blue line) support near the $9,200 mark, after it has been glued to it for almost 10 days. Chart below shows the break of the 200 DMA, as the price action trades below the 100 DMA as well.
The confluence of the 100DMA and 200 DMA will now act as a major resistance around the $9,300 mark. In addition, the slightly ascending trend line (the thin red line) will also add to that resistance. As seen in the daily chart above, the price action is now trading below the important horizontal support (the horizontal blue line) at $9,090. All in all, bitcoin’s most recent price action has all elements of a bearish trading setup.
The weekly chart offers us a few hints about levels that may attract the price action in the coming days. First support comes around the descending trend line (the red line), which connects the lower highs starting from the two-month high of $10,350. The trend line currently comes around the $8,100 handle.
The second horizontal support (the lower blue horizontal line), together with the 100 WMA, create a major confluence of support around the $7,500 mark. Judging by the most recent price developments, Bitcoin is well-positioned to continue its take down the current slide well below the $8,000 handle.
The confluence of the 100DMA and 200 DMA will now act as a major resistance around the $9,300 mark. In addition, the slightly ascending trend line (the thin red line) will also add to that resistance. As seen in the daily chart above, the price action is now trading below the important horizontal support (the horizontal blue line) at $9,090. All in all, bitcoin’s most recent price action has all elements of a bearish trading setup.
The weekly chart offers us a few hints about levels that may attract the price action in the coming days. First support comes around the descending trend line (the red line), which connects the lower highs starting from the two-month high of $10,350. The trend line currently comes around the $8,100 handle.
The second horizontal support (the lower blue horizontal line), together with the 100 WMA, create a major confluence of support around the $7,500 mark. Judging by the most recent price developments, Bitcoin is well-positioned to continue its take down the current slide well below the $8,000 handle.
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