- Bitcoin consolidates the drop to 2.5-week lows on Sunday.
- The coin remains vulnerable amid bearish technical set up.
- 7,200 is the level to beat for the bulls in the near-term.
The bears take a breather over the last hours, allowing a brief consolidation phase in Bitcoin (BTC/USD), the most favorite cryptocurrency, having reached the lowest levels in two-and-a-half weeks at 7,007 in early trading this Sunday. At the time of writing, the spot trades around 7,050, losing -2.50% over the last 24 hours while down nearly 5.50% on a weekly basis. Its market capitalization decreased to $ 128.79 billion from $ 130.73 billion seen in Saturday’s European hours.
Friday’s bounce in the no. 1 coin was proved as a dead cat bounce after sellers returned on Saturday amid overall bearish short-term market sentiment, as the technical outlook has turned outrightly negative for the widely traded digital asset, Bitcoin.
Technical Overview
BTC/USD 1-hour chart
Following a rising wedge pattern breakdown (bearish reversal pattern) was confirmed on the hourly chart Saturday, the price saw sharp declines and reached the pattern target at 7,075. The selling interest remained unabated and in fact intensified after the 21- hourly Simple Moving Averages (HMA) breached the 50 and 100-HMA from above, driving the coin to test the 7k mark on several occasions. Despite a brief pause in the sell-off, any upside attempts are likely to get sold-off into the stiff resistance between the 7,080 and 7,100 levels, the confluence of the 23% Fibonacci Retracement level (Fib) of the latest decline and the bearish 21-HMA. Also, the hourly Relative Strength Index (RSI) has further room to fall as it still lies above the oversold territory.
BTC/USD daily chart
Looking at the bigger picture, BTC/USD confirmed a symmetrical triangle breakdown on the daily sticks on Saturday, having closed below the pattern trendline support of 7,115. Therefore, the bears now have their eyes set on the pattern target that is aligned around 6,100 levels and could be reached over the next few weeks. The November lows of 6,526.81 could offer some interim support to the price, with a minor Santa rally back to the 7k threshold cannot be ruled before sellers take over again.
All in all, ‘Sell the bounce’ looks like the Bitcoin story for now.
BTC/USD Levels to watch
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Prisma price tanks 25% after nearly $9 million exploit
Prisma Finance (PRISMA) is being exploited, and the attacker has so far pulled $9 million in Ethereum from the borrowing protocol. Prisma asked vault owners to take the necessary steps to protect funds from the ongoing attack in an official tweet on X.
Meme coins gain traction after SEC’s partial win in Coinbase lawsuit: DOGE, SHIB, BRETT, POPCAT, BODEN
US SEC pocketed a partial win in its lawsuit against Coinbase, ushering a correction in crypto prices on Thursday. Despite the broad pullback, prices of meme coins like Dogecoin, Shiba Inu and Solana-based BRETT, POPCAT and BODEN increased.
Ondo moves $95 million worth of OUSG assets to BUIDL as tokenized fund attracts $245 million since debut
Ondo Finance (ONDO) announced on Wednesday that it's shifting about $95 million worth of its OUSG's underlying assets to the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
XRP price stuck below $0.65 resistance, Ripple lawsuit could suffer from Coinbase defeat
XRP price falls slightly to $0.61 on Thursday after its landmark programmatic sales ruling in July, which gave Ripple a partial victory against the US SEC, failed to reverberate in a similar legal battle between the regulator and crypto exchange Coinbase.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.