BitcoinUpdated BTC/USD: Double-Top Formation Takes Shape
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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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.