Bitcoin Futures (BTC1) – Extending April’s losing streak to almost 20%

Bitcoin Futures (BTC1) – Extending April’s losing streak to almost 20%

Posted on Monday, April 25 2022 at 9:21 pm GMT+0000

Bitcoin Futures (BTC1) started the week in the red after falling notably for three consecutive sessions reducing their distance with the January low at 33,000. The crypto-king is extending April’s losing streak to almost 20%, and Monday’s price movements that forced the liquidation of $87.00 million in positions are reflecting the gloomy mood in the crypto market, warning of further underperformance in the coming weeks.

Last week’s push for recovery faltered in the vicinity of the falling 20-week simple moving average, residing some distance below the 50-week moving averages. So, will the bears keep pushing downwards in the coming sessions? Well, the technical indicators are favoring the case at the time being. The momentum indicator just broke the ascending trendline and ticked beneath zero, and the RSI is hovering below its moving average and the 50-neutral mark. The negatively charged stochastic oscillator, whose %K line has pierced into oversold territory, is also promoting additional negative moves.

In this negative scenario, bearish pressures could lead the price to test the January 24th bottom of 33,000. Diving past that and more importantly beneath the congested area of lows printed between June and July 2021 around 29,100, encapsulating the 61.8% Fibonacci retracement level of the uptrend stretching from the March 2020 bottom to the November 2021 ATH, will shift the long-term outlook to bearish, paving the way straight to the 78.6% Fibonacci retracement level at 18,260.

On the upside, there are several obstacles that the bulls need to breach before they reclaim the lead. Particularly, they have to overrun the 20-and 50-week simple moving averages at 41,920 and 44,500 respectively, the 38.2% Fibonacci retracement of the November – January down-leg at 46,900, and the neighboring March high of 48,500. By successfully clearing these barricades, they will then jump to the 61.8% Fibonacci retracement level at 55,500.

Overall, the recent disturbing developments are throwing doubts about the long-term technical picture, and a significant drop below 29,100 will confirm the beginning of a new bearish era.