Bitcoin – BTCUSD eyes 28 600 USD again
Over the weekend, BTCUSD formed a new low near 33 000 USD price tag. We still maintain a bearish view on Bitcoin as we expect it to drift lower. Our short-term price target of 32 500 USD stays in place. Furthermore, we would also like to set a new medium-term price target of 30 000 USD. Bearish technical and fundamental developments support our bearish view. Indeed, they foreshadow much more weakness ahead for Bitcoin . If the general stock market selloff continues (which we expect), then it is likely for Bitcoin to form new lows below 28 600 USD. However, at the moment, we will pay close attention to the price and its ability to take out support levels first.
Illustration 1.01
The picture above shows simple resistance and support levels. We will pay close attention to 32 950 USD and 28 600 USD price levels. At the moment, taking out 32 950 USD would confirm a further continuation of the downtrend.
Technical analysis – daily time frame
RSI is due to perform bearish crossover, which we expect to be accompanied by heavy selling pressure. MACD and Stochastic are bearish . DM+ and DM- show bearish conditions in the market. ADX indicates that the bearish trend is gaining further strength. Overall, the daily time frame is very bearish for BTCUSD .
Illustration 1.02
The picture above shows a recent bearish breakout; previously, we stated that the downtrend would accelerate once a breakout occurred. The prediction became fulfilled, and the selloff started to accelerate after the breakout.
Technical analysis – weekly time frame
RSI , MACD , and Stochastic are bearish . DM+ and DM- are also bearish . ADX started to increase recently, suggesting that the higher degree’s bearish trend has returned. 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 serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
