Bitcoin – BTCUSD has broken below markers of key support as the bearish sentiment continues to prevail. Yesterday night, BTCUSD took out the 8289 support line with an amazing 39% price penetration filter, which has opened the door for more downside unless something really radical happens to reverse the trend.
Technical Outlook for Bitcoin
The Bitcoin price candles on the daily chart have breached the 100-EMA support, which pavd the way for the break of the horizontal support at 8289. The DeMarker oscillator remains deeply oversold and is still pointing downwards, with no sign of a pullback. Price action is also starting to challenge the lower border of the downward sloping price channel which has formed on the daily chart, connecting the lows of price action from May, June and July as well as recent lows.
The lower channel border will interact with the 7700 horizontal price level. A break of this border looks good to open the door for attainment of 7071, which is where the 23.6% Fibonacci level from the 2017 all-time highs to the Dec 2018 lows reside.
Only something dramatic which pushes Bitcoin above the $13,000 mark will negate the bearish sentiment. Bear in mind that Bitcoin continues to remain in a downtrend as far as the long-term charts are concerned. Any pullbacks to the upside which do not reflect a fundamental shift in sentiment should be viewed as opportunities to sell on rallies.