Bitcoin broke to the downside of the rectangle it had been trading since the last week of October. BTCUSD was trading above $9,000.00 until last week. Now, the cryptocurrency is finding bids at the 200 SMA around $8,740.00 where it previously found resistance in October 10.
The cryptocurrency has been spared from the dollar’s strength. In fact, downward pressure on BTCUSD continue despite crypto company Bakkt announced that it would offer custody services institutional clients after it had been given the green light the New York Department of Financial Services (NYDFS). This news is generally viewed as progress towards becoming a mainstream currency. It resulted to an uptick in volume in the Bitcoin futures markets but it did very little to the cryptocurency’s current price.
Not even news about China-based retailer, Alibaba, partnering with bitcoin for its app could keep the cryptocurrency from sliding down the charts.
More selling pressure could push Bitcoin down to its next support level just below $8,000.00 around $7,790.00 where it previously established lows in September 26, September 30, and October 7. A break below that level could send BTCUSD further down to its October 24 lows at $7,400.00
On the other hand, should bitcoin bulls re-enter the market, we could see BTCUSD retest its October 27 high at $10,353.09.Download our latest quarterly market outlookfor our longer-term trade ideas.
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