As many had predicted Bitcoin has broken down the support trendline establish back in Dec 22. EMA 200 has provided support in the weekly timeframe.
The chart looks quite bearish. Note that even the highest high set in July 13th already had a clear RSI divergence.
The next support stands at $25,000. I think it will break. I would consider entering shorts once market stabilizes a bit and price begins retracing.
Note that BTC is following its seasonal performance for pre-halving years. 2019 and 2015 both saw important price declines in late summer. The difference in this case is central banks are battling high inflation and interest rates are substantially higher than they were in those years (with notable exception of Central Bank of China).
Once inflation begins easing (specifically core inflation, which is proving hard to push down), Federal Reserve and ECB will begin lowering their interest and so risk assets like crypto will be able perform better.
We are also in a pre-US election year, that is traditionally not good for risk assets.
I like to be optimist and think that bears are operating in borrowed time. In some months, we'll potentially have central banks lowering interest rates, Bitcoin halving approaching fast and why not SEC approving Bitcoin ETF. Then we can all put our bull hats on. Till that happens, crypto will, for the most part, bleed down or be lethargic.
Good luck to all
The chart looks quite bearish. Note that even the highest high set in July 13th already had a clear RSI divergence.
The next support stands at $25,000. I think it will break. I would consider entering shorts once market stabilizes a bit and price begins retracing.
Note that BTC is following its seasonal performance for pre-halving years. 2019 and 2015 both saw important price declines in late summer. The difference in this case is central banks are battling high inflation and interest rates are substantially higher than they were in those years (with notable exception of Central Bank of China).
Once inflation begins easing (specifically core inflation, which is proving hard to push down), Federal Reserve and ECB will begin lowering their interest and so risk assets like crypto will be able perform better.
We are also in a pre-US election year, that is traditionally not good for risk assets.
I like to be optimist and think that bears are operating in borrowed time. In some months, we'll potentially have central banks lowering interest rates, Bitcoin halving approaching fast and why not SEC approving Bitcoin ETF. Then we can all put our bull hats on. Till that happens, crypto will, for the most part, bleed down or be lethargic.
Good luck to all
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