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BTC/USD outlook: Bulls are taking a breather for consolidation/limited correction

BTC/USD outlook: Bulls are taking a breather for consolidation/limited correction
Slobodan DrvenicaSlobodan DrvenicaWindsor Brokers

BTC/USD

Bitcoin eases on Monday, shifting focus towards the floor of near-term consolidation range (50500) established after larger bulls started to run out of steam and left fresh multi-month peak at 53017 (Feb 20).

Early signal of an uptrend’s stall and subsequent correction has been generated from daily RSI bearish divergence and strongly overbought weekly studies.

Last week’s action ended in red Doji candlestick after a four weeks of continuous advance, contributing to initial signals of reversal.

Deeper drop and violation of psychological 50000 support would lead to formation of reversal pattern on weekly chart and further weaken near-term structure for deeper correction.

Broader uptrend remains firmly in play and suggests that limited correction should precede fresh push higher, with extension below 50000 to be contained above 47500 zone (near Fibo 38.2% of 38501/53017 / daily Kijun-sen) to mark a healthy correction and offer better levels to rejoin larger bullish market.

Res: 51600; 52500; 53085; 54330.
Sup: 50500; 50000; 48310; 47500.

Chart

Author

Slobodan Drvenica

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.

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