BTC/USD Fibonacci analysis: Potential for the further drop
Is BTC/USD poised for a downside continuation?
In the daily timeframe, we observed a strong rejection at the key Fibonacci confluence resistance level of $59.500. Detrended oscillator is signaling a potential peak and continuation of the downtrend. The presence of these technical indicators suggests that the price is likely to face increased selling pressure in the near term.
Utilizing projected Fibonacci expansion targets, we have identified short-term downside objectives at $53.640 and 50.600. These levels are critical as they represent potential areas where the price might find support or experience a temporary pause in the downtrend.
The overall 20-day trend is to the downside, indicating a persistent bearish sentiment in the market. Momentum indicators also support this bearish outlook, reinforcing the likelihood of further declines.
Traders should closely monitor price action around these Fibonacci levels and the behavior of the Stochastic Oscillator. Any significant divergence or convergence at these points could provide early signals for potential reversals or continuations in the trend. Additionally, staying updated with any macroeconomic events or market news that might impact sentiment is crucial for making informed trading decisions.
Author
Petar Jaćimović
FXCentrum
Petar Jaćimović was born on 8 July 1989 in Jagodina, Serbia.
