Missed bitcoin’s descending triangle breakdown?
There could still be a chance to catch the new trend on this pullback!
Take a look at these retracement levels on the 4-hour chart.
Bitcoin (BTC/USD) 4-hour Forex Chart by TradingView
Bitcoin chalked up further losses as worsening geopolitical conflict in the Middle East sparked a massive wave lower for risk assets.
Bulls still seem to be defending the $100K key support level strongly, though, triggering a bounce from the latest slump.
Will resistance zones attract more sellers though?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on bitcoin and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
BTC/USD is closing in on the 38.2% Fibonacci retracement level on the breakdown move, which is close to the pivot point level ($102,748) so keep your eyes peeled for reversal candlesticks suggesting that the downtrend could resume from here.
A larger correction could reach the 50% Fib closer to the former triangle bottom and the $104K major psychological mark or the 61.8% level near the $105K mark. Note that the 100 SMA remains below the 200 SMA to suggest that the path of least resistance is to the downside.
Still, a sustained rally back above the Fib levels and the dynamic resistance at the moving averages could clear the way for a rally back to the triangle top and R1 ($107,257) or even to the next upside target at R2 ($113,498) past the record highs.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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