Bitcoin - BTCUSD is headed to new lows!
Updated
Over the weekend, Bitcoin's deceitful price action left many bulls hoping for a bounce on a Monday. Indeed, many analysts rushed to forecast another bottom and continuation of the rally, basing their calls merely on little gains during Saturday and Sunday. However, right after the futures market opened, Bitcoin and other cryptocurrencies quickly erased their early gains.
At this point, Bitcoin erased approximately half of its recent rally. It is currently down about 17% from its peak on 15th August 2022 (when we argued that the top of the bear market rally was in). Today, we maintain the same notion and are extremely bearish in the short term. Indeed, several technical developments support our opinion and point to the impending acceleration of the selloff.
As for the medium-term and long-term outlook, fundamental factors like higher interest rates, quantitative tightening, and the global economy slowing down do not allow us to change our bearish view.
Now, we will pay close attention to the support level at 20 700 USD. If it is broken to the downside, that will further bolster the bearish case for BTCUSD. Additionally, we will watch a volume level; ideally, we would like to see more build-up in it, accompanying further price drop.
In accordance with our outlook, we maintain price targets for BTCUSD at 17 500 USD and 15 000 USD.
Illustration 1.01
Illustration 1.01 shows our assessment of particular price levels and how bearish they are. Yellow arrows indicate developments we used as confirmations for our thesis. The green arrow shows an ideal picture of volume and what we would like to see occur again.
Technical analysis - daily time frame
RSI is very bearish. MACD and Stochastic are bearish. DM+ and DM- is bearish too. Overall, the daily time frame is very bearish.
Illustration 1.02
Illustration 1.01 shows another bearish breakout that helped us to assess BTCUSD.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
At this point, Bitcoin erased approximately half of its recent rally. It is currently down about 17% from its peak on 15th August 2022 (when we argued that the top of the bear market rally was in). Today, we maintain the same notion and are extremely bearish in the short term. Indeed, several technical developments support our opinion and point to the impending acceleration of the selloff.
As for the medium-term and long-term outlook, fundamental factors like higher interest rates, quantitative tightening, and the global economy slowing down do not allow us to change our bearish view.
Now, we will pay close attention to the support level at 20 700 USD. If it is broken to the downside, that will further bolster the bearish case for BTCUSD. Additionally, we will watch a volume level; ideally, we would like to see more build-up in it, accompanying further price drop.
In accordance with our outlook, we maintain price targets for BTCUSD at 17 500 USD and 15 000 USD.
Illustration 1.01
Illustration 1.01 shows our assessment of particular price levels and how bearish they are. Yellow arrows indicate developments we used as confirmations for our thesis. The green arrow shows an ideal picture of volume and what we would like to see occur again.
Technical analysis - daily time frame
RSI is very bearish. MACD and Stochastic are bearish. DM+ and DM- is bearish too. Overall, the daily time frame is very bearish.
Illustration 1.02
Illustration 1.01 shows another bearish breakout that helped us to assess BTCUSD.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Trade closed: target reached
Our price target of 17 500 USD was reached.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.