Bitcoin (BTC) – Expected to extend its bearish cycle in the medium-termPosted on Sunday, June 12 2022 at 9:59 pm GMT+0000
Bitcoin (BTC) bears flexed their guns, cracking the base of the one-month old consolidation pattern at 28,000, rekindling the medium-term bearish structure, below the Ichimoku red cloud.
The crypto-king is distancing itself below the Ichimoku directional lines, which recently reclaimed a negative charge, confirming that bearish forces have been jump started. Moreover, the oscillators are signaling that the downwards pressures are intensifying. The MACD, which has been improving since mid-May, lost steam lately and is ready to cross below its signal line some distance below zero, while the RSI is falling in the bearish region, after painting a double-top formation around the 50-neutral mark.
For now, a decisive daily close below the nearby May 12th low at 25,400 will trigger an aggressive extension towards the 161.8% Fibonacci level of the last up-leg around 21,000. A violation here and more importantly a drop below the 19,500 – 20,000 zone, stretching back to November and December 2020, will see a continuation towards the 227.20% Fibonacci level at 16,500.
In the opposite scenario where the bulls step back above the Ichimoku directional lines, another challenge needs to be addressed to confirm additional upside corrections. Practically, they need to overrun the Late May peak at 32,400. A successful step above it will confirm further advances towards the February low at 34,300 ahead of the 37,100 – 37,400 congested zone.
In brief, Bitcoin is expected to extend its bearish cycle in the medium-term, likely bringing the 21,000 mark next under the spotlight. Only a jump over 32,400 could shrug that negative scenario, raising optimism for some meaningful recovery.