BTC/USD: Double-Top Formation Takes Shape
Updated
BTC/USD extends the series of lower highs and lows from last week to push the Relative Strength Index (RSI) to its lowest level since August.
BTC/USD Outlook
A double-top formation has taken shape as BTC/USD failed to defend the opening range for June, and a move below 30 in the RSI likely to be accompanied by a further decline in Bitcoin like the price action from last year.
A breach below $57590 (78.6% Fibonacci extension) may lead to a test of the May low ($56525), with the next area of interest coming in around $53510 (61.8% Fibonacci extension).
Nevertheless, BTC/USD may face range bound conditions amid the flattening slope in the 50-Day SMA ($65485), and Bitcoin may attempt to retrace the decline from the monthly high ($71932) if it holds above the May low ($56525).
--- Written by David Song, Strategist at FOREX.com
BTC/USD Outlook
A double-top formation has taken shape as BTC/USD failed to defend the opening range for June, and a move below 30 in the RSI likely to be accompanied by a further decline in Bitcoin like the price action from last year.
A breach below $57590 (78.6% Fibonacci extension) may lead to a test of the May low ($56525), with the next area of interest coming in around $53510 (61.8% Fibonacci extension).
Nevertheless, BTC/USD may face range bound conditions amid the flattening slope in the 50-Day SMA ($65485), and Bitcoin may attempt to retrace the decline from the monthly high ($71932) if it holds above the May low ($56525).
--- Written by David Song, Strategist at FOREX.com
Note
BTC/USD may trade within the opening range for July as it no longer carves a series of lower highs and lows, but a double-top formation may unfold as Bitcoin fails to hold above the May low ($56525). BTC/USD seems to be halting a four-day selloff to keep the Relative Strength Index (RSI) out of oversold territory, with a close above $57590 (78.6% Fibonacci extension) raising the scope for a move towards the monthly high ($63804).
Need a break/close above the $62780 (100% Fibonacci extension) to $64850 (23.6% Fibonacci extension) region to bring $70000 (38.2% Fibonacci extension) on the radar but failure to defend last week’s low ($53587) may lead to a test of $50650 (50% Fibonacci extension).
Next area of interest comes in around $47780 (38.2% Fibonacci extension) followed by the February low ($41860).
--- Written by David Song, Strategist at FOREX.com
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