Bitcoin (BTCUSD) is down about 0.75% this Thursday and therefore continues the slow but steady dip towards the 7,000 price level, extending its daily losses by yet another day. After closing about 0.25% lower in the previous session, Bitcoin is now pushing against the lower border of the symmetrical triangle spotted on the weekly chart.
The bearish sentiment in the cryptocurrency market has persisted all week long as news of several cryptocurrency scams continue to hit the market. Recently, a number of Ponzi scheme operators have been busted in the US and Vanuatu, and many are already calling out yet another popular crypto project. Such events do not evoke a lot of investor confidence in the market and the sentiment in the market is for BTCUSD to push lower.
There are also reports that Bitcoin longs are hitting all-time highs, according to authorities on the issues such as Cactus which regularly monitor the trading volumes on margin-based cryptocurrency exchanges. According to a tweet by Cactus, the pattern over the last two years has been for a massive selloff to occur after the accumulation of long positions occur. Will history repeat itself? Here is the outlook for BTCUSD going into the weekend.
The pair remains locked in the symmetrical triangle, with today’s price action showing up as a doji candle that is right on the triangle’s lower border. The triangle pattern is a continuation pattern, which in the context of the current chart, should resolve with a bearish continuation. However, only a definitive close below the symmetrical triangle will confirm this picture. A downside break will therefore target the immediate price support targets at 6873 (which is the 23.6% Fibonacci retracement) as well as 6127 and the 5400-5750 support zone.
On the flip side, a break of the triangle to the upside negates the pattern and targets the immediate resistance zone of 7500 – 7700. There is potential for attaining the next resistance at 8843 and possibly 9430 (38.2% Fibonacci price level) if bullish momentum were to hit the markets.