BTC/USD outlook: Extends steep fall well below psychological100K support
BTC/USD
BTC/USD holds in a steep descend for the fourth consecutive, with strong acceleration lower on Thursday / early Friday, being sparked by fresh sales of risky assets.
Traders remain concerned about lack of economic data following the longest US government shutdown in history and moved into risk-off mode, until getting clearer picture.
Bitcoin broke through key supports at 100340 and 100K (50% of 74389/126299 rally / psychological) and extended below June 22 low (98182), to test levels under 96K and hit the lowest since early May.
Bears eye next targets at 94219 (Fibo 61.8%) and 93203 (top of ascending weekly Ichimoku cloud, though price adjustment to be anticipated as daily studies are getting oversold.
The latest drop completed a bearish failure swing pattern on daily chart, adding to negative signals from firmly bearish daily technical studies (14-d descends deep into negative territory/ MA’s in full bearish setup, with converging 55/200DMA’s on track to form death-cross.
Broken supports at 101370 and 100K (55WMA / psychological) reverted to resistances which should ideally cap upticks, with close below these levels to keep bears intact.
Res: 98870; 100000; 101370; 102080.
Sup: 95800; 94219; 93203; 92800.
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.
