Bitcoin Futures (BTC1) – Looking to be at a disadvantageous position in the long-term picture

Bitcoin Futures (BTC1) – Looking to be at a disadvantageous position in the long-term picture

Bitcoin Futures (BTC1) opened with a positive gap slightly above the 40,000 level on Monday leading to more than $70.95 million positions being liquidated, but gains proved short-lived, with the price barely inching back below that key number.

Overall, the technical picture does not look very encouraging at the current time. Something that is also reflected by the negatively aligned Ichimoku lines. Moreover, the price slumped below the cloud setting the stage for additional bearish developments.

Furthermore, the oscillators are suggesting a commanding negative bearing, as the RSI is sliding in the bearish area and the momentum indicator crossed beneath its ascending trendline and currently nudged past the zero mark.

Should negative momentum intensify further, the crypto-king will challenge the January 24^th bottom of 33,000 which overlaps with the 3/1 Gann fan angle stretched from the March 2020 low. A bit lower, a tougher battle will likely take place near the critical 29,20 –28,800 region of congested lows posted between June and July 2021. A clear penetration here will totally demolish the long-term positive structure, sending the price below the 4/1 Gann line.

Alternatively, for the bulls to come back into play, the price will need to jump back inside the cloud and beyond the Tenkan-sen line around 41,400. Still, only a continuation beyond the 38.2% Fibonacci retracement level of the November – January down-leg at 46,900 and more importantly the most recent high at 48,500 can revive hopes for a sustainable rally beyond the Kijun-sen line and initially towards the 61.8% Fibonacci level at 55,500.

Overall, Bitcoin is looking to be at a disadvantageous position in the long-term picture. The longer the price is capped below the cloud, the bigger the risk for a bearish reversal.