A couple of days ago, Bitcoin officially entered the zone of the longest stretch of declining prices, surpassing the previous streak of 2013 - 2015. Since making the $19,764 high on Dec. 17th, the world’s biggest digital currency has spent the last 415 days in decline.
The outlook for the bulls doesn’t get much better. Since the break of the descending triangle (the converging red lines), the price action has moved in one direction only.
In mid-December, the BTC created a fresh 2018 low of $3,216. Since then, the price action had been trapped within a symmetrical triangle (the converging orange lines). However, today may be the day we have another major bearish element in the overall technical picture, as BTC threatens to break down.
We can better grasp the potential break that has been developing since this morning. More or less, any daily close below the triangle support, currently sitting at $3,500, may prove to be a catalyst for another leg lower.
A substantial break of the triangle support may push the price to retest the 2018 low. Ultimately, we expect a break of the 2018 low, as the 161.8% Fibonacci extension may act as a price magnet in this case. The major Fibo extension comes around the $2,400 mark.
Beforehand, the psychologically-important $3,000 may provide significant amount of support for the bulls. This zone also includes an important horizontal support for BTC. On the upside, the BTC bulls must fight today to stay within the triangle. Otherwise, the above mentioned scenario is at risk of materializing in the following days and weeks.
The outlook for the bulls doesn’t get much better. Since the break of the descending triangle (the converging red lines), the price action has moved in one direction only.
In mid-December, the BTC created a fresh 2018 low of $3,216. Since then, the price action had been trapped within a symmetrical triangle (the converging orange lines). However, today may be the day we have another major bearish element in the overall technical picture, as BTC threatens to break down.
We can better grasp the potential break that has been developing since this morning. More or less, any daily close below the triangle support, currently sitting at $3,500, may prove to be a catalyst for another leg lower.
A substantial break of the triangle support may push the price to retest the 2018 low. Ultimately, we expect a break of the 2018 low, as the 161.8% Fibonacci extension may act as a price magnet in this case. The major Fibo extension comes around the $2,400 mark.
Beforehand, the psychologically-important $3,000 may provide significant amount of support for the bulls. This zone also includes an important horizontal support for BTC. On the upside, the BTC bulls must fight today to stay within the triangle. Otherwise, the above mentioned scenario is at risk of materializing in the following days and weeks.