- 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.
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