Bitcoin Futures (BTC1!) – Bearish mode remains in play in the long-term picturePosted on Monday, July 25 2022 at 9:09 pm GMT+0000
Bitcoin Futures (BTC1!) painted a third straight green candle for the first time since early February, to close another volatile week during which it jumped to a fresh 5-week high of 24,280. Nevertheless, the flagship cryptocurrency remains under pressure as it continues to drift well below the descending trendline stretched from November ATH, and kicked off Monday’s session on a dim note sending the long positions’ liquidations to $22.22 million, representing 76.51% of the total liquidations of the day.
The flat Ichimoku lines are indicating a stall in the descent in spite of their persisting bearish alignment, while the oscillators are still conveying subdued signals. The KST is sustaining a negative charge below its equilibrium level and the RSI is struggling to improve, hovering marginally above the 30 threshold.
Additionally, the sideways trajectory of the OBV is reflecting that the last three weeks’ upward movement was not accompanied by a remarkably strong trading volume, which means that the crypto-king may lose additional ground in the coming sessions.
If the above scenario materializes, preliminary support may develop from June’s bottom of 17,600. Should this critical boundary break down, bearish forces may then target the 2019’s highs of 14,200, while further losses could open the way for a test of the February 2020 highs of 10,700.
On the flip side, upside moves may immediately be curbed by the Tenkan-sen line around 25,500, ahead of the June 2021 inside swing low of 28,800. A rally above the latter, and more importantly above the descending trendline, would probably amplify buying interest, leading the price to the 32,900 – 33,500 area linking the January bottom and the Kijun-sen line. Triumphing above this resistance section, the bulls could then challenge the Ichimoku cloud and the 2022 top of 48,500.
All in all, Bitcoin’s bearish mode remains in play in the long-term picture, especially since the price continues to trade beneath the Ichimoku lines and the trendline. Hence, a break below the 17,600 handle could empower negative tendencies.