BTC/USD outlook: Bears taking a breather after strong fall on Friday
Bitcoin
Bitcoin is consolidating after strong fall last Friday (down 5.3% for the day, the biggest daily drop since Nov 9) and keeping negative tone.
The price fell below 22000 mark (although manage to register a marginal close above this level) retracing over Fibo 76.4% of the recent 21336/25244 upleg.
Friday’s large bearish daily candle weighs on price action, as near-term focus shifted to the downside.
Weakening daily studies (falling 14-d momentum is about to break into negative territory / RSI is below neutrality zone and daily Tenkan-sen crossed below Kijun-sen), maintaining bearish near-term tone.
On the other hand, short-term action remains within larger 21336/25244 consolidation range, lacking direction.
Fresh bears pressure initial support at 21827 (Fibo 38.2% of 16300/25244), violation of which would open way for test of key support at 21336 (Feb 13 low / range floor).
Limited consolidation needs repeated close below pivotal barrier at 22828 (broken Fibo 61.8% / Feb 24 low) to keep bears intact for fresh push lower.
Conversely, return and close above 22828 would ease downside pressure and unmask upper pivots at 23202/23283 (converging 20/10DMA’s) break of which will bring bulls back to play.
Res: 22828; 23283; 23599; 23987.
Sup: 22258; 21827; 21336; 20903.
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.
