Monday, 29 November 2021 09:30 GMT

Bitcoin Prices Under Pressure- Time to Buy?


(MENAFN- DailyFX) To receive Michael's analysis directly via email, please

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.

New to Forex? Get started with this

BTC/USD 240min

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.

Join Michael on Friday for his bi-weekly Live Webinar on the Foundations of Technical Analysis-

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-

---

Relevant Data Releases

Check out this week's

Other Setups in Play

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter or contact him at .


MENAFN2109201700760000ID1095886020


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.