Missed the double top breakout on bitcoin?
Price recently fell through the neckline of this reversal pattern, hinting that a longer-term slide is within the works.
BTC/USD appears to be shaping up for a fast retest of the world of interest, so keep your eyes peeled in case the trend resumes!
Bitcoin (BTC/USD) Every day Chart by TradingView
Bitcoin has struggled to interrupt past the solid barrier at $72,000 previously few months, forming a double top reversal pattern and breaking below the neckline to concede that bears could have their way.
Nevertheless, dollar weakness on rising September Fed rate cut speculations have allowed BTC/USD to tug up from its recent lows across the $53,000 region.
Are sellers just waiting for a likelihood to hop in at higher levels? Or are buyers seeking to restart the “Trump trade” crypto rally?
Do not forget that directional biases and volatility conditions in market price are typically driven by fundamentals. Should you haven’t yet done your fundie homework on bitcoin and the U.S. dollar, then it’s time to ascertain out the economic calendar and stay updated on every day fundamental news!
Note that the broken neckline support is spanned by the 38.2% to 50% Fibonacci retracement levels around $60,000 to $62,000 so there may very well be lots of eyes on this area of interest. Holding as a ceiling could send bitcoin back to its latest swing low or to fresh ones at S2 ($50,867) then S3 ($43,279).
However, a move past the resistance area on the Fibs could clear the best way for a move back to the highs near R1 ($70,265) or higher.
Just don’t forget that the 100 SMA is above the 200 SMA for now to reflect the presence of bullish vibes but that the gap between the indications is narrowing to hint at a possible downward crossover.
Higher keep tabs on this week’s set of top-tier catalysts to gauge USD direction and overall risk sentiment, too!
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