Βitcoin – BTCUSD trades 11.54% lower at 8,560 making fresh three month lows at 7998 (according to Bitstamp) but the last hour BTCUSD managed to rebound from daily low and as of writing bitcoin has also regained the 50-day moving average.
The BTCUSD technical analysis picture is bearish as we have already mentioned in our previous article, as the price trades below the 100 and 200-day moving average. Bitcoin breached today the support of the descending triangle enhancing the bearish outlook. Immediate support for bitcoin stands at 7,998 today’s low and then at 7,500 the low from June 6th. Some Technical analysts will argue that the move down will expand to the height of the triangle and can reach the 5,000 mark. The critical point for the next hours is the 50-day moving average at 8,287; a second break below will attract more bears to join the downward move. If the bitcoin price stays above the 50-day moving average then I will not be surprised by a move up to 9.350 the triangle support line which now has turned into a resistance.
On the upside, BTCUSD strong resistance now stands at 9,350 the triangle support line and then at 9,782 daily high. Bulls may add to long positions if BTC breaks above the 9,350; the take profit target must be set at 10,220 the triangle resistance, while a protective stop might be placed at 8,288 (50-day MA). Bears can take a bet and enter a short position if BTC breaks below the 50-day MA for second time.Download our latest quarterly market outlookfor our longer-term trade ideas.
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