BTC/USD outlook: Another attempt to break out of the range fails at key 94K resistance zone
Bitcoin remains in red for the second straight day and follows weakness in most of safe havens on Wednesday.
Fresh weakness emerged after repeated failure at strong resistance at 94000 (50% retracement of 107502/80514 / short-term range top), where several attacks have been capped recently, with Tuesday’s Hanging man candle, seen as negative signal.
Bears pressure immediate support at 90820 (broken Fibo 38.2% / daily Tenkan-sen) with other nearby significant levels at 90000 (psychological) and 89580 (daily cloud base / daily Kijun-sen) being also exposed.
Fading bullish momentum and south-heading daily RSI (also broke below its 7-d MA) generate negative signals, which could be partially countered by converged 10/55DMAs, on track to form a bull cross.
Near term action still holds in the upper part of the recent six-week range that keeps slight bullish bias, but loss of 90000/89500 zone would weaken the structure and risk deeper drop.
Overall, short term action remains within the range and violation of either range boundary to generate stronger direction signal.
Res: 92050; 92340; 93150; 94000
Sup: 90823; 90000; 89580; 88725
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
