Did you miss the Bitcoin double top breakout?
The price recently fell through the neckline of this reversal pattern, indicating that a long-term slide is in progress.
The BTC/USD pair looks set for a quick retest of the area of interest, so keep your eyes peeled in case the trend resumes!
Bitcoin (BTC/USD) Daily Chart by TradingView
Bitcoin has struggled to break through the strong barrier at $72,000 over the past few months, forming a double top reversal pattern and breaking below the neckline to admit that the bears may have their way.
However, the weakness of the dollar due to growing speculation of a Fed rate cut in September allowed the BTC/USD pair to rise from its recent lows around the $53,000 area.
Are sellers waiting for a chance to enter higher levels? Or are buyers looking to restart the “Trump trade” crypto bull run?
Remember that directional biases and volatility in market prices are usually driven by fundamental factors. If you haven’t done your homework on Bitcoin and the US Dollar yet, it’s time to check out the economic calendar and stay up to date with the daily fundamental news!
Note that the broken neckline support runs between the 38.2% to 50% Fibonacci retracement levels around $60,000 to $62,000, so there could be a lot of eyes on this area of interest. Holding the price as a ceiling could see Bitcoin return to the lows or to new lows at S2 ($50,867) and then S3 ($43,279).
On the other hand, a move past the resistance zone at the Fibonacci level could pave the way for a return to the highs near the R1 level ($70,265) or higher.
Just don’t forget that the 100 SMA is above the 200 SMA at the moment to reflect bullish sentiment but the gap between the indicators is narrowing indicating a potential bearish crossover.
It’s best to keep tabs on This week’s collection of top-notch motivators To gauge the direction of the US dollar and risk sentiment in general as well!
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