Will Bitcoin fall below key support of 57835?
|BTC/USD traded lower on Monday and Tuesday after it hit resistance at 66100. That said, the slide was stopped slightly above the key support barrier of 57835, which prevented the crypto from moving lower on October 27th and 28th. Although the price structure suggests that the prevailing uptrend has run out of steam, we will not call for a reversal yet. We prefer to wait for a dip below 57835 before doing so. Thus, for now, we will stay neutral.
A clear and decisive dip below 57835 would confirm a forthcoming lower low and may initially target the low of October 12th, at 52675. If the sellers are not willing to stop there, then we could see them diving towards the 50350 zones, marked by the low of October 6th, the break of which could extend the fall towards the inside swing high of September 24th, at 45295.
Shifting attention to our short-term oscillators, we see that the RSI moved lower and just touched its toe below the 30 level, while the MACD lies below both its zero and trigger lines, pointing down. Both indicators detect strong downside speed, adding to the chances of a break below the key support of 57835.
Now, on the upside, we will start examining the resumption of the prevailing uptrend only if we see a break above the round figure of 70000, slightly below which the token hit its record last Wednesday, at 68920. Such a break will take Bitcoin into the uncharted territory and thus, with no prior highs or inside swing lows to mark potential next resistances, we will target the next psychological numbers. First, we will aim for the 75000 territory, and then for the 80000 zone.
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