Bitcoin - Breakout below 19 000 USD confirms our bearish thesis

Yesterday, Bitcoin dropped below the support level at 19 526 USD. Then later, the price continued below 19 000 USD, halting its movement at a low of 18 540 USD. These developments are negative for Bitcoin and further confirm the bearish thesis we laid out in our previous articles.

At the same time, there was no significant change in fundamental or technical factors, allowing us to stick to our bearish outlook and price targets at 17 500 USD and 15 000 USD. Although with mounting evidence of the global economy slowing down, we think the price of Bitcoin will drift far below our price targets. Indeed, we believe Bitcoin will test 10 000 USD in the coming months.

Despite that, we would first want to see our price targets being hit. After that, we will reassess the situation and set new price targets.

Illustration 1.01

Illustration 1.01 shows the 5-minute chart of BTCUSD. The yellow arrow indicates yesterday's quick price action that led to Bitcoin plunging below the 19 000 USD price tag.

Technical analysis - daily time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the daily time frame.

Illustration 1.02

The chart above shows three bearish breakouts, which also confirm our bearish thesis. However, the most recent breakout was retraced; ideally, we want to see the price drop and stay below the immediate support/resistance.

Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame.

Illustration 1.03

Illustration 1.03 shows the daily chart of BTCUSD. The yellow arrow indicates the spike in volume, which is another bearish development. Ideally, from here, we would like to see volume increase accompanying a declining price.

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.

Trade active:

Our latest statement about the potential pump and dump (prior to and after the Ethereum merge) also applies to BTCUSD and the overall cryptocurrency market. Regardless, we stay bearish.