BTCUSD (Bitcoin) breached a symmetrical triangle to the downside on Wednesday in the four-hour chart and plunged to the 9,300 support-area – a negative trend signal. The fast-Stochastics and the RSI signal, however, have bottomed in the oversold territory and are turning higher, hinting that a rebound may be around the corner.

A move northward could initially pause around the 9,680 barrier and then somewhere between the 23.6% Fibonacci of 10,130 of the downleg from 13,809 to 9,011 and the 50-period exponential moving average (EMA). Should the rally extend beyond the latter, worries over a down-trending market would cease and resistance could run up to the August 26 peak of 10,600. Slightly higher, the 38.2% Fibonacci of 10,832 could also reject the bulls before a tougher battle starts near 11,130.

In case negative forces take over, traders could look for support within the 9,000-8,876 area, while slightly lower the May barrier of 8,367 could halt downside movements as well. Moving deeper, the next stop could be within the 7,650-7,400 zone.

- advertisement -

In brief, BTCUSD looks oversold in the daily chart, facing negative trend signals as well.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.