Bitcoin Weekly Forecast: BTC bearish fractal forecasts correction to $25,000
- Bitcoin price trades around $27,000 and $28,000 for the fifth consecutive day.
- BTC fractal remains intact, preventing BTC from retesting the $30,000 psychological level.
- A lack of buying pressure could see BTC crash to $25,000 or lower.
- A decisive daily candlestick close above $30,000 will invalidate the bearish outlook.
Bitcoin (BTC) price hovers around $27,600 and shows no directional bias on the daily chart. Liquidity pockets are present in both directions, leaving traders guessing where BTC will go next.
Bitcoin price fractal holds steady
Bitcoin (BTC) price fractal discussed in a previous publication has faced rejection at the 200-day Simple Moving Average (SMA) at $28,000 and faces a strong sell-off. This caused the October 2 candlestick to close below it. Since then, BTC has been consolidating in a $1,300 range as it trades between $27,000 and $28,000.
The bearish fractal is in play, and if history repeats, Bitcoin price should head lower to the next key support level at $25,762. A breakdown of this barrier could cause BTC to retest the $25,000 psychological level and the subsequent support level at $20,431.
BTC/USD 1-day chart
But the bearish fractal is not something that is written in stone. If Bitcoin price overcomes the 200-day SMA at roughly $28,000 and produces a daily candlestick close above the $30,000 psychological level, it will invalidate the fractal.
There are a few reasons why an upward movement could occur – an upside deviation in the jobs report by a large magnitude, approval of a spot Bitcoin Exchange-Traded Fund (ETF), or the US Securities and Exchange Commission (SEC) losing another lawsuit against a crypto firm, to mention some examples.
Positive news could trigger a short-term bullish move in Bitcoin price. Hence, traders must prepare for an invalidation of the bearish outlook.
Read more on Bitcoin's bearish fractal
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Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
