BTCUSD (Bitcoin) has experienced a sharp sell-off since early June after its long-lasting sideways pattern was breached to the downside. Nevertheless, the king of cryptocurrencies has managed to bounce back slightly after it ceased its downfall at the 18-month low of 17,590.
The short-term oscillators are indicating a bearish near-term bias. The MACD histogram is currently below both zero and its red signal line, while the RSI has just escaped from the oversold territory.
Should the negative momentum strengthen, the recent low of 17,590 could act as the first line of defense. Further downside moves may then stall at the August 2020 resistance of 12,500. A violation of the latter could open the door for the pandemic low of 3,850.
On the flipside, bullish actions could propel the price towards the 28,737 level, which is the 61.8% Fibonacci retracement of the 3,850-68,999 upleg. Conquering this barricade, the bulls might aim for the 50% Fibo of 36,425 before the 38.2% Fibo of 44,112 appears on the radar. Higher, the 23.6% Fibo of 53,624 could prove to be a tough obstacle for the price to overcome.
Overall, BTCUSD appears to have entered a new consolidation phase, while near-term risks remain tilted to the downside. Therefore, a break beneath the 17,590 floor could signal the resumption of Bitcoin’s recent downside trajectory.