- The Bitcoin price is stuck in a bearish triangle.
- Another downtrend is imminent, as the simple moving average of the 55-day line is not shaping the price development positively.
- Expect further downside pressure as BTC approaches the base of the triangle.
Bitcoin (BTC) has risen significantly in the past few weeks and climbed the $ 50,000 mark last week. A failed attack on the R1 monthly resistance level at $ 53,000 caused BTC to tip over and plunge down. Several technical levels were broken in this crash. With that break, the lower base formed a descending bearish triangle that has been going on for six consecutive days.
Bitcoin price faces further losses
Bitcoin price formed a triangle around $ 48,000 and has been on a downward slide ever since. Given the lower highs and the fact that the price is being pushed down towards $ 44,800, it is only a matter of time before the actual triangle base test at $ 44,088 takes place.
Add to this the 55-day simple moving average (SMA) at $ 44,886. Usually this should be a supportive factor. At the beginning of the new trading week, however, it is already being shaken quite violently. Do not expect any further meaning from this SMA in the coming days.
First, expect to retest the baseline at $ 44,088, with another rebound up towards the red trendline. This will be the last opportunity for the sellers to put their entire volume behind this trade and strike.
BTC / USD daily chart
The squeeze would break the downside with profit taking at $ 43,030. This level goes back to August 1st and is quite significant. Price broke up in an apparent breakthrough on Aug 6 and was retested as a support a day later. This is an excellent level for a second test upwards. Sellers will have a hard time maintaining their position here. As soon as Bitcoin bounces off that level at $ 43,030, expect another spike, attempting to break the triangle’s red descending trendline.
If sellers push Bitcoin further down, the first significant level could be hit at $ 38,073. That’s quite a long way off, but if headwinds persist after last week and global market sentiment remains negative, this is a possible outcome.