BTCUSD had a stable weekend. However, as the weekend came to an end, Bitcoin started to show signs of deep trouble. Investors started exiting.
Investors moving out of BTCUSD sparked off a herd of other retail traders who trade based on what others are doing. It could potentially lead to investors flocking in stocks as Wall Street begins a new trading week. Thus, the Dow Jones and S&P 500 might rise today.
BTCUSD breaks critical support levels
Bitcoin showed signs of stress last Friday. It was in a consolidation range and was just above the support level at $9,100. We talked in our previous post that a drop below this level could spark off massive selling.
BTCUSD breached the support of the crucial $9,100 mark and formed a new monthly low of $8,900.
As of now, Bitcoin seems to have lost its ground and on the verge of a free-fall. Over the past 20-hours, BTCUSD dropped more than 5.5%.
The next vital support for Bitcoin is at $8,535.14.
Technical analysis and price prediction for BTCUSD
Published On: TradingView.com
The four-hour timeframe for BTCUSD shows that even though Bitcoin’s decline gained pace in the last 12 hours, the sell-off began much earlier. The previous five trading sessions formed red candlesticks.
The traded volume for Bitcoin is currently above the average. It indicates that the sellers have overpowered the buyers, and the sentiment in the market is pretty Bearish.
The MACD indicator for BTCUSD is plunging deep into the Bearish territory after having a downward crossover recently. RSI is diving into the oversold zone.
Moreover, both the 50-period and the 200-period Simple Moving Average are above the current traded price of Bitcoin. It shows that BTCUSD is Bearish in the short term as well as the long term. The Technical Analysis reveals that today’s range for Bitcoin could be between $8,535 and $9,300.