Analysis

TA: Bitcoin Key Indicators Suggest Risk of Extended Downside Correction

Bitcoin price is down over $ 500 from the $ 13,850 swing high against the US Dollar. BTC is showing bearish signs and it could even decline below the $ 13,000 support.

  • Bitcoin failed to stay above the $ 13,500 support and declined below $ 13,200.
  • The price is currently consolidating near $ 13,200 and the 100 hourly simple moving average.
  • There is a key contracting triangle forming with support near $ 13,220 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to resume its decline below $ 13,200 and $ 13,100 in the near term.

Bitcoin Price Starts Downside Correction

Bitcoin price traded to a new monthly high at $ 13,850 before starting a major downside correction. BTC broke the key $ 13,500 support level to move into a short-term bearish zone.

The decline gained pace below the $ 13,200 level and the 100 hourly simple moving average. The price even spiked below the $ 13,000 level and traded as low as $ 12,899. Recently, there was a recovery wave above the $ 13,000 and $ 13,100 levels.

The price traded above the 23.6% Fib retracement level of the recent decline from the $ 13,850 high to $ 12,899 low. Bitcoin is currently consolidating near $ 13,200 and the 100 hourly simple moving average.

Bitcoin Price

There is also a key contracting triangle forming with support near $ 13,220 on the hourly chart of the BTC/USD pair. If there is a downside break below the triangle support and $ 13,200, there is a risk of a fresh decline. The next major support is near the $ 13,000 level.

If the bulls fail to defend the $ 13,000 support level, it could open the doors for an extended downside correction towards the $ 12,600 level or $ 12,500 in the coming sessions.

Upside Break in BTC?

If bitcoin stays above the $ 13,200 support level, it could clear the triangle resistance near the $ 13,315 level. The next key resistance is near the $ 13,375 level. It is close to the 50% Fib retracement level of the recent decline from the $ 13,850 high to $ 12,899 low.

The main hurdle for the bulls is near the $ 13,500 level, above which the price is likely to restart its rally and it could even revisit the $ 13,850 high.

Technical indicators:

Hourly MACD – The MACD is likely to move into the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.

Major Support Levels – $ 13,200, followed by $ 13,000.

Major Resistance Levels – $ 13,315, $ 13,375 and $ 13,500.

Let’s block ads! (Why?)

Technical analysis – NewsBTC

Leave a Reply

Your email address will not be published. Required fields are marked *