Bitcoin price analysis: BTC/USD takes a breather after surge – Is this the absolute ceiling?
|- Bloodbath in the crypto market as Bitcoin leads cryptos in trimming gains.
- Bitcoin has a bearish bias; technical levels suggest continuing declines in the coming sessions.
BTC/USD trading pair is leading the market, only this time not in the upward direction but in single-digit losses. Just before the declines set in, Bitcoin was on an upward trajectory after breaking above $13,000. The largest digital asset by market capitalization zoomed to new yearly highs at $13,862 before hitting the pause button.
The reversal is as if Bitcoin hit its absolute ceiling and the only viable direction was to the south. A flash drop on Thursday failed to find support at the 61.8% Fib retracement level taken between the last drop from $13,862 to a low of $11,637. Moreover, both the 50 Simple Moving Average (SMA) and the 50 SMA failed to offer support. Bitcoin dived further under $12,000 and formed an intraday low at $11,637.
A correction has since occurred from the lows on the day, however, the uptrend lost steam after breaking above the 61.8% Fib. At press time, BTC/USD is trading at $12,184 amid a building bearish trend. Besides, the buyers are battling to keep the Bitcoin above the 23.6% Fib level. The next support target is seen at $12,000 while the intraday low at $11,637 will prevent BTC from testing $11,500.
Technically, Bitcoin has a bearish bias and the divergence in the Moving Average Convergence Divergence (MACD) means that the price could explore the levels towards $11,000 in the near-term. The sharply dropping RSI also means that the bulls are gaining traction.
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.