Bitcoin market was indecisive for most of the week. However, it is now showing signs of movement, but not in the preferred direction of the investors.
Bears have kept the BTCUSD market in their grip since the beginning of the year. Devastating declines greeted the occasional upswings.
Three crucial technical indicators point to a drop in BTCUSD
The technical indicators are now turning extremely Bearish for BTCUSD in the short term. Although it is bad for the investors, the short term traders could grab this opportunity and make some profits.
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For the short term aspect, we will use the four-hour BTCUSD timeframe as a reference.
- First, we can see the trendlines in the BTCUSD chart. They connect the peaks and declines. We can see the recent breakdown of Bitcoin below the lower trendline. The trendline was in place for some time now. Breaking below it gave a strong Bearish confirmation.
- The second technical indicator is the Death Cross pattern. In one of my previous articles on Bitcoin, I anticipated the formation. The 50-period Simple Moving Average crossed below the 200-period SMA. It is yet another Bearish pattern.
- BTCUSD is currently trading below several crucial support levels. These long time support levels will now act as resistances. $9,350 will be a new resistance for Bitcoin. Moreover, BTCUSD is trading below the lower band of the Bollinger Bands. Even if it rises from here, the 20-period Exponential moving average will act as a dynamic resistance level.
Levels to watch out for Bitcoin
The resistance at $9,345 will be something to watch out. Even if Bitcoin manages to break that resistance level, $9,500 will act as a physical as well as a psychological resistance.
The decline could continue till $9,100, which will most likely be the bottom of the dip.
