BitcoinShort
Bitcoin’s big breakdown: Will we retest the June lows?
After trailing this summer’s recovery rally in the correlated Nasdaq 100, Bitcoin is now underperforming the tech-heavy index to the downside.
After testing its 50-day EMA last week, BTC/USD is currently trading down by 8% on the day to approach its 1-month low in the $20,750 area. More importantly, the cryptocurrency is set to break below the rising channel off it’s mid-June lows. Combined with the simultaneous breakdown in the 14-day RSI’s rising channel, today’s selloff suggests that the medium-term downtrend has likely resumed after this summer’s bounce.
To the downside, the next levels to watch are the aforementioned late-July lows at $20,750, followed by the early-July lows near $18,750. A break below that level would likely trigger stops for a quick run below $18,000.
Meanwhile, bulls would need to see a sustained break back above the 40-day EMA before having any confidence in a stronger bounce.
After testing its 50-day EMA last week, BTC/USD is currently trading down by 8% on the day to approach its 1-month low in the $20,750 area. More importantly, the cryptocurrency is set to break below the rising channel off it’s mid-June lows. Combined with the simultaneous breakdown in the 14-day RSI’s rising channel, today’s selloff suggests that the medium-term downtrend has likely resumed after this summer’s bounce.
To the downside, the next levels to watch are the aforementioned late-July lows at $20,750, followed by the early-July lows near $18,750. A break below that level would likely trigger stops for a quick run below $18,000.
Meanwhile, bulls would need to see a sustained break back above the 40-day EMA before having any confidence in a stronger bounce.
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