Bitcoin outlook: Collapses below 100K
BTC/USD
Bitcoin was sharply down and dipped below psychological 100K support in early Monday trading.
The price dropped around 6% in Asian session, in the biggest session drop in a weeks, mainly driven by risk-off selling.
Fresh drop weakened near-term structure, fueling risk of further losses, particularly if bears sustain break below 100K, although will face another significant supports which guard key 90K support zone.
On the other hand, larger picture shows that broader bulls remain in a consolidation phase and probably preparing for fresh push higher, as overall sentiment is positive, and traders await signals from Trump’s administration about promised overhaul and liberalizing of crypto market regulations in the US.
From this perspective, today’s drop looks like positioning for fresh rally, but price needs to hold above 90K breakpoint, to keep bullish stance.
It will be also interesting to watch January’s close, after Bitcoin repeatedly failed to register monthly close above 100K in past two months.
Another failure would signal prolonged sideways mode but also signal growing downside risk on formation of a double bull-trap above 100K on monthly chart.
Res: 100000; 101734; 102771; 104734.
Sup: 97645; 96886; 93887; 91189.
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
