Breaking News / Bitcoin / Analytics
Bitcoin (BTC) has shown obvious signs of weakness and it has repeatedly closed below the 200 EMA on the 4H time frame now. We have yet to see a close below the 21 Week EMA to have further confirmation that BTC/USD has indeed resumed its downtrend. The fractal we see in the making is a lot similar to the one that preceded it which led to a massive decline down to the bottom of the descending channel. If the same were to happen this time, then the price might plunge below $7,222 to test the bottom of the channel but it is likely to find support above $7,222 because that is the 61.8% fib extension level from the December low to the top in June.
The next decline is going to be very significant because we would want to see how the price holds up around the 61.8% fib extension level. Should the price decline below that level in a similar manner to how it has before, then we are likely to see a break below this descending channel which would be a very bearish development that would accelerate the fall towards $4,500. If it declines further to break the symmetrical triangle and enter a descending triangle then we would have further confirmation that BTC/USD has not bottomed and we might see a decline below $3,000 for the price to find its true bottom. There are a lot of traders that are still bullish on BTC/USD at this point. We have yet to see a sharp decline below the 200 EMA on the 4H time frame and for the EMA alignment to turn bearish.