BTC/USD: Bearish breakout on the horizon

  • BTC/USD market sees a bearish breakout on the horizon from the market triangle and flag formation.
  • Bulls need to gear up and protect the $3,500 support line, even though the market doesn’t have the momentum necessary to make any drastic moves.

The BTC/USD daily market is on the verge of a price breakout. Technical analysis shows that this breakout is going to be bearish. The bulls need to rally together and defend the critical $3,500 support line to prevent further downward movement. However, it doesn’t look like the market has the momentum necessary to make any drastic moves.

BTC/USD daily chart

The BTC/USD daily chart shows that the price is primed for a breakout from both a triangle and flag formation. The 50-day simple moving average (SMA 50) is trending above the SMA 20 curve to indicate a sell signal, which will mean that the market is entering the bearish territory. The moving average convergence/divergence (MACD) histogram shows that the market is getting less bullish over time, but the momentum is not quite drastic. This is evident when we check the relative strength index (RSI) curve as well. The curve is trending around the neutral 50.0 mark.
 

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