Bitcoin on Monday depreciated more than 2 percent against the US Dollar from its bear flag top from Saturday.

The BTC/USD kickstarted Asian trading session by consolidating sideways near-term between 6688-low and 6722-high. The pair in the absence of upside sentiment started losing positions to shorts. As a result, it fell as low as 6580-fiat at the beginning of the European trading session. Ever since, BTC/USD is attempting a weak bounce back, valued above 6600-level at the time of this writing.

BTC/USD Technical Analysis

The BTC/USD expects to either consolidate sideways in medium-term or continue its downtrend concerning the current descending trendline. As long as Bitcoin stays capped under the falling trendline, we cannot stop being bearish. It guarantees a downtrend towards our 9-month bottom around 5785-fiat, where we could find some bull whales, after all, to create long opportunities towards the falling trendline.

A consolidation pattern, in the meantime, could put us inside a channel defined by 6851-fiat as resistance and 6113-fiat as support. As we have just reversed after forming a bear flag top, short sentiments toward the support could prove higher, which would have our RSI indicator and Stochastic oscillator take a drop towards their respective selling regions. The bias, in the meantime, would remain bearish, also because the 50H, 100H, and 200H MAs will be way too above the BTC/USD value.

That’s Bitcoin for you long-term.

BTC/USD Intraday Analysis

According to out intraday strategy, we are already in a short position towards the recently tested interim support near 6580-fiat. A breakdown scenario below the level would have us extend our short position towards 6500-fiat, our psychological downside target. In this position, a stop loss somewhere 2-pips above the entry point will define our risk management perspective.

Conversely, if price bounces back from support, we’ll put an immediate long towards 6637-fiat, our interim resistance, while eyeing a pullback to repeat our position towards the interim support. Anyway, we will still be expecting a breakout despite being bearish (nobody can trust the price action of Bitcoin). Should it happen, we’ll put an extended long position towards 6672-fiat in hope to exit it on a decent profit. A stop loss, meanwhile, somewhere three-pips below the entry point will ensure our losses are minimized.

Trade safely!

Featured image from Shutterstock. Charts from TradingView.

Follow us on Telegram or subscribe to our newsletter here.
Join CCN’s crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Hacked.com? Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.


Source link


Please enter your comment!
Please enter your name here