Is a Bitcoin Party Over? Crypto Threatens Major Reversal

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Talking Points

BTC/USD Daily

BTC/USD Daily Chart

Technical Outlook: Bitcoin responded to a pivotal support connection this week during 2258 where a 61.8% prolongation of a decrease off a record highs converges on simple median-line support. This threshold might continue to offer a near-term postpone though a medium-term opinion stays slanted to a downside after Sunday’s breakdown. Interim insurgency stands with a monthly open 2465 with a crack / tighten above a 2017 high-day tighten during 2667 indispensable to symbol resumption of a broader uptrend.

BTC/USD 240min

BTC/USD 240min Chart

Notes: A closer demeanour during a 240min draft sees bullish dissimilarity into these new lows, serve highlighting a risk for a near-term liberation in a span (note that a span is on gait to post an outside-day annulment off a lows today).

That said, demeanour for initial insurgency during 2455/65 corroborated by a median-line connection around ~2522– both areas of seductiveness for probable near-term depletion / short-entries. If a early-month relapse is an denote of a spin in broader trend, cost should not surpass 2640.

Interim support stays with a Fibonacci connection during 2258/64 with a mangle next a median-line targeting successive support objectives during 2120 a 200-day relocating average, now ~1996. From a trade standpoint, a evident risk is for a miscarry to deposit aloft here though ultimately, a opinion stays bearish while within this arrangement / next a monthly operation highs.

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– Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex or hit him during mboutros@dailyfx.com.

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