Bitcoin (BTCUSD) could fall further before stabilising
The anticipated break below the 43577.07 Fibonacci retracement has been delayed, as unwinding oversold daily stochastics prompt a bounce, clearing congestion around 48000 to reach 52000. Daily studies remain mixed/negative, however, suggesting any further tests above 52000 should prove difficult to maintain.
In fact, broader weekly charts are turning bearish, (stochastics are negative and the bullish proprietary Tension Indicator is flattening), suggesting this bounce is corrective in nature, and likely to give way to fresh losses.
In the coming sessions, risk remains for a deeper pullback in Bitcoin.
A close below the 43577.07 retracement will add fresh weight to sentiment and open up the 42000, monthly high of 8 January. Still lower is the 40089.68 retracement and congestion around 40000, where improving monthly charts could prompt fresh consolidation and renewed buying interest.
Looking further out, positive monthly charts highlight later continuation of the dominant bull trends. But current investors are likely to wait for better re-entry levels.
In fact, broader weekly charts are turning bearish, (stochastics are negative and the bullish proprietary Tension Indicator is flattening), suggesting this bounce is corrective in nature, and likely to give way to fresh losses.
In the coming sessions, risk remains for a deeper pullback in Bitcoin.
A close below the 43577.07 retracement will add fresh weight to sentiment and open up the 42000, monthly high of 8 January. Still lower is the 40089.68 retracement and congestion around 40000, where improving monthly charts could prompt fresh consolidation and renewed buying interest.
Looking further out, positive monthly charts highlight later continuation of the dominant bull trends. But current investors are likely to wait for better re-entry levels.