Bitcoin price falls as expected, but this fractal suggests bears have work to do
- Bitcoin price has fallen 8% in the last 48 hours.
- A fractal wave of previous BTC behavior is being utilized to forecast a potential smart money fake-out.
- Invalidation of the bearish thesis should remain at $27,000 but can be moved into profit for traders looking to reduce risk.
Bitcoin price continues to fall as expected. The trade setup forecasted last week is well in profit. Reducing risk is a good idea, but traders will be susceptible to a liquidity hunt.
Bitcoin price falls sharply
Bitcoin price currently auctions at $19,963. The peer-to-peer digital currency lost support from the 8- and 21-day simple moving averages this week, which catalyzed a sharp 8% decline and counting.
Last week a bearish trade setup targeting $18,900 was forecasted with an entry at $23,125. After the entry signal occurred, a fractal wave of Bitcoin's previous market behavior was implemented to gauge future market movements.
BTC/USDT 1-Hour Chart
Currently, the fractal is relatively similar to the current decline; moving the invalidation point from last week's $27,000 into break even is respectable but will come with accompanying risk. Bitcoin price can still experience a smart money liquidity hunt towards the entry-level before reaching the intended 18,900 target zone.
Thus invalidation of the bearish thesis remains the same as last week's thesis at $27,000 until further notice. The $19,300 level should be watched closely over the weekend as the fractal suggests smart money may get involved in a liquidity hunt near the zone.
In the following video, our analysts deep-dive into Bitcoin's price action, analyzing key levels of interest in the market - FXStreet Team
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
