Bitcoin (BTC) – Bears snapped the bottom line of the ascending channel deteriorating the medium-term outlookPosted on Sunday, August 28 2022 at 8:50 pm GMT+0000
After almost a week of sideways trading, Bitcoin (BTC) bears returned with vengeance and finally snapped the bottom line of the ascending channel pulled from June lows, forcefully pushing the price below the crucial July 26th bottom at 20,700.
The move deteriorated the medium-term outlook, and has been accompanied with a remarkable increase in trading volume. According to the traditional definition and analysis of trading volume and market patterns, a decrease in price with an increase in trading volume suggests a bearish pattern. Combined with a bearish crossover between the 20- and 55-day exponential moving averages, the bloodbath is certainly not over.
The momentum oscillators are endorsing that scenario, since the RSI is fading in the negative territory and came in a shy distance of the 30-oversold mark while the MACD is diving below both its signal and trigger lines.
The spotlight is currently on the July 13th low at 18,900, where any dip lower will immediately meet the mid-June bottom at 17,600. Breaking that floor too, will trigger a steeper decline towards the late November 2020 low at 16,200 and the 15,000 zone.
Otherwise, if buyers start to push back, initial resistance could occur at the aforementioned 20,700 barrier and the adjacent trendline of the channel. Not too much higher, the 20-day exponential moving average could try to delay a test of the August 4th low at 22,400, which is expected together with the 55-day moving average to shut the way towards the most recent high of 25,200 posted on August 15th.
All in all, Bitcoin is currently exposed to additional bearish actions, and a drop below 17,600 will reactivate the broad downtrend.