Bitcoin Futures (BTC1!) – Ready to underpin the current bearish bias

Bitcoin Futures (BTC1!) – Ready to underpin the current bearish bias

Posted on Monday, August 22 2022 at 8:27 pm GMT+0000

Bitcoin Futures (BTC1!) came under renewed selling pressure and tumbled around 15%, back to the 21,000 zone. The crypto-king’s two-month rally snagged in the vicinity of the 14-week exponential moving average, which along with the 21-and 55-week exponential moving averages are safeguarding the bearish long-term outlook. Additionally, although Monday kicked off with a 0.75% upside gap, gains proved short-lived, and the price swiftly inched back lower, sending the long positions’ liquidations to 12.86 million, representing 54.32% of the total liquidations of the day.

As the price is hovering beneath the descending trendline stretched from the November ATH, the momentum oscillators are showing that the negative impetus is still intense. The RSI is holding deep in the bearish territory while the TSI refused to step above its signal line, both located well below the neutral level. Additionally, the ROC dived back into the negative waters promoting further declines.

Hence, sellers are expected to keep controlling the reins and soon challenge the most recent bottom of 18,500, while aiming to stretch the current downtrend initially towards the 161.8% Fibonacci extension level of the June – August up-leg at 14,300 and the neighboring 2019 highs. Piercing below these barricades, the price may then plunge towards the region linking the 2020 highs around 10,700 and the 227.2% Fibonacci level at 10,000.

On the flip side, if buying interest picks up, preliminary resistance could continue to emanate from the 14-week exponential moving average seen around 24,700. Climbing higher, the descending trendline coupled with the 21-week exponential moving average at 27,300 may delay a visit of the June 2021 bottom of 28,800. However, should buyers conquer this barrier, they could jump to the 32,800 – 34,300 area molded by the January and February lows encompassing the 55-week exponential moving average. Further higher, eyes will turn towards the 2022 peak of 48,500.

Summarizing, despite the recent upside correction Bitcoin Futures are still exhibiting a sturdy bearish bias below the exponential moving averages and a drop beneath 18,500 will likely unleash another strong bearish wave.