Bullish Hopes Are Broken Again As Bitcoin Declines on Monday

Bitcoin has broken through the short term descending trend line on Friday and retested it later. Then BTC/USD jumped off this trend line and started to grow slowly with wide range fluctuations allowing to earn both bulls and bears.

We have drawn an ascending trading line, which supported the price during the weekend. The currency pair entered the Ichimoku cloud on Sunday and even reached its upper border. Bitcoin has tested it and the resistance level at 8 694.

Later, bears have taken control again and pushed the currency pair lower for another correction. Bitcoin has tested the ascending trend line and crossed it meaning the end of this short-term upside tendency. It has also broken through the support line at 8,528 area.

The currency pair has reached the next support line at 8,372 are in the moment of writing. Bears make attempts to cross it. There are two scenarios here. The first one means BTC price will jump off this 8,372 support line area and reverses towards the resistance area at 8 528. However, bulls will have to deal with another obstacle- the lower border of the Ichimoku cloud. If successful, they will be able to test the resistance.

The other scenario for Bitcoin is the breakout of the current support area at 8,372 with the development of local downtrend.

Let’s have a look at the daily chart. Here the situation remains unchanged as the price stays still within the Ichimoku cloud in the middle of the formation. Bulls were trying to counterattack but in the moment of writing the candlestick bearish. It is better to wait until it forms to make any conclusions.

Check the full crypto analysis HERE