Bitcoin outlook: Falls sharply from new record high but larger bulls are still firmly in play
|BTCUSD collapsed on Thursday (down around 5% into mid US session) after hitting new record high (124500) in Asia.
Bitcoin was deflated by comments from US Treasury Secretary who ruled out buying more BTC for the US strategic reserve, as government plans to rely more on confiscated holdings, rather than to purchase.
Today’s drop was the biggest daily loss since mid-June, which is on track to generate further bearish signals (completion of bearish engulfing pattern on daily chart and potential sixth consecutive failure to register a weekly close above psychological 120K level).
Near-term structure has weakened and keeps the downside vulnerable, although 200HMA (118K zone) has so far provided a temporary footstep, where temporary base is forming on hourly chart.
Larger picture, however, remains firmly bullish (action is underpinned by thick daily cloud / daily Tenkan/Kijun-sen in bullish setup and trend higher / positive momentum is still strong despite the latest weakening) and supports scenario of healthy correction before larger bulls regain control for renewed attempts towards recent record highs.
Res: 120000; 120573; 123261; 124500
Sup: 117500; 117030; 116622; 115850
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.