BTC/USD seems to hold its downside tendency

Bitcoin has lost nearly three percent in the past 24 hours. The currency pair, in general, seems to hold its downside tendency despite the fact that it demonstrates signs of a deep correction currently. We have redrawn the red descending midterm trend line as the situation changes all the time.

Let’s have a look at the situation within the Fibo retracement formation.

BTC price jumped off $8,559 area (resistance) and moved lower, breaking through several Fibo and support levels. The ascending green trendline was crossed without any difficulties meaning bulls had no power to hold this upside tendency.

BTC/USD continues to fall as it has broken through the next support area at $8,380 and approached the closest support area at $8,184.

The possible scenarios for Bitcoin are the following:

1. BTC price will develop its downside progress and reach the support area at $8,184. It coincides with the Fibonacci retracement 0.618 level. If sellers successfully test this support, Bitcoin price will likely to fall even deeper towards the next retracement level (0.786).

2. Bitcoin will start to grow from the current level or from the closest support area at $8,184 targeting the closest 0.5 retracement level. If buyers are successful, they will have a chance to drive the currency pair even higher, towards the next 0.382 retracement level at least. The next resistance target is at the $8,380 area.

3. There will be no significant changes in price and BTC/USD will stay close to the current levels.

Check the full crypto analysis HERE