In our previous posts, we warned about the decrease in volume which accompanied the rally. Since then, BTCUSD saw a reversal, and the price faltered by 7%. Technical and fundamental factors continue to point to the downside for Bitcoin. Therefore, we would like to update our short-term price target for BTCUSD to 42 500 USD. Additionally, we would like to set a medium-term price target to 40 000 USD.
Technical analysis - daily time frame
RSI is very bearish. The same applies to MACD and Stochastic. DM+ and DM- performed bearish crossover just recently, suggesting the beginning of the bearish trend. ADX contains a relatively low value which means the trend is still in its early stage. Overall, the daily time frame is bearish and forecasts more downside for BTCUSD.
Illustration 1.01
RSI shows a steep decline on the daily time frame. We will watch whether it will manage to continue lower and potentially break below 30 points. If there is such an occurrence, we expect it to be accompanied by a catastrophic selloff in BTC.
Technical analysis - weekly time frame
RSI continues to develop the long-term bearish structure. MACD failed to cross above 0 points into a bullish area. DM+ and DM- are bearish. ADX suggests the presence of a neutral (or weak trend). Overall, the weekly time frame bolsters the bearish case for BTCUSD.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Technical analysis - daily time frame
RSI is very bearish. The same applies to MACD and Stochastic. DM+ and DM- performed bearish crossover just recently, suggesting the beginning of the bearish trend. ADX contains a relatively low value which means the trend is still in its early stage. Overall, the daily time frame is bearish and forecasts more downside for BTCUSD.
Illustration 1.01
Technical analysis - weekly time frame
RSI continues to develop the long-term bearish structure. MACD failed to cross above 0 points into a bullish area. DM+ and DM- are bearish. ADX suggests the presence of a neutral (or weak trend). Overall, the weekly time frame bolsters the bearish case for BTCUSD.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Trade closed: target reached:
The short-term price target has been reached.
Trade active:
We would like to change the medium-term price target to the short-term price target.
Trade closed: target reached
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