BTC/USD outlook: Bears regain full control but continue to face headwinds

BTC/USD

BTCUSD remains in red for the third straight day and pressures again key supports at 111370 (100DMA / 50% retracement of 98182/124558) and 110722 (daily Ichimoku cloud base) after fully retracing Friday’s post-Powell rally and dipping to the lowest since July 9.

Bitcoin rallied over 4% on Friday, inflated by unexpected Powell’s dovish shift (the biggest daily gain since Mar 2) but gains proved to be short-lived and mainly providing better selling levels (rally was capped by falling daily Tenkan-sen and just under broken bull trendline, reverted to resistance).

Huge sell-off over the weekend deflated bitcoin and generated initial signal of bearish continuation of pullback from new record high.

Daily studies are bearish (daily Tenkan/Kijun-sen are diverging after formation of bear-cross / negative momentum is strengthening) that opens prospects for further losses.

Firm break of 11370/110722 is needed to confirm bearish signal, with violation of nearby psychological 110K support, to add to bearish stance and expose next targets at 108258 (Fibo 61.8%) and early July higher base at 105K zone.

However, strong headwinds at key support zone (long tail of Sunday’s daily candle) warn that bears may lose traction here.

Consolidation above these support could be one of scenarios, with upticks to be capped under 114500 (daily Tenkan-sen) to keep near term bias with bears.

Res: 111870; 113680; 114500; 115620.
Sup: 110722; 110388; 110000; 108258.