Lower lows and lower highs continue to be constituted

Recently, we raised a word of caution over the impending selloff. Since then, Bitcoin has dropped below $25,000, constituting a new low. This move came amid our continuous emphasis on Bitcoin making lower lows and lower highs after topping near $31,000 in April 2023. Due to that, we pay close attention to levels at $25,270 (resistance) and $24,258 (support); if the price falls below the latter level, it will bolster a bearish case in the short term. Besides that, we also observe MACD, RSI, and Stochastic on the daily time chart; all of them are developing bearish structures, with RSI is due to cross below 30 points. If RSI successfully breaks below 30 points, it will be very bearish for Bitcoin (likely accompanied by heavy selling pressure). As for our stance, it remains unchanged. We continue to hold the notion that since November 2022, we have experienced one of the most deceitful bear market rallies. Accordingly, we maintain our price targets at $15 000 and $13,000.

Illustration 1.01
Illustration 1.01 displays the daily chart of BTCUSD. The yellow arrow indicates a breakout below the important resistance (previously support) at $25,270. The next support level we are paying close attention to is $24,258.

Technical analysis gauge
Daily time frame = Bearish
Weekly time frame = Bearish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.

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 be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.