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Bitcoin prices slide below near-term support- Decline to offer favorable long-entries Check out our quarterly projections in our Join Michael for Live Weekly Strategy Webinars on BTC/USD Daily Chart
Technical Outlook: Last week we noted a in Bitcoin prices with the decline eyeing support targets at 'the 50% retracement at 3404 with a more significant support confluence eyed at 3023/97- this region is defined by a host of Fibonacci considerations and converges on the lower parallels heading into next week.
A low was registered at 2972 before rebounding sharply back into the median-line of the broader . From here things could get a little dicey and while there's probably more room on the downside here near-term, the outlook remains constructive while within this formation with broader bullish invalidation now raised to the lower parallel / 100DMA at ~3270s. Key near-term resistance now at 4213 with a breach above the record high-day close at 4600 needed to mark resumption.
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Notes:A closer look at price action highlights Bitcoin continuing to trading within the confines of a near-term descending median-line formation off the monthly high with prices slipping back below the median-line today in New York. Immediate threat is lower sub-4001 with near-term support targets eyed at 3561 & the 61.8% retracement at 3410- (both areas of interest for possible exhaustion / long-entries).
A breach above 4213 would shift the focus towards initial resistance targets at 4363 and the upper median-line parallel, currently ~4580s. Bottom line: If you're not already short, I'd be looking for a reaction lower down for possible long-entries. If you are holding shorts, I'd be looking to book a portion / lower protective stops heading into the aforementioned support targets.
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A summary of shows traders are net-long BTCUSD- the ratio stands at +1.78 (64.0% of traders are long) bearishreading Long positions are 5.1% lower than yesterday and 5.3% lower from last week Short positions are 2.4% lower than yesterday and 15.2% higher from last week. We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Bitcoin (USD) prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Bitcoin (USD) price trend may soon reverse higher despite the fact traders remain net-long. See how shifts in retail positioning impact price trends-
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- Written by Michael Boutros, Currency Strategist with DailyFX
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