Bitcoin could continue its decline up to $30,000 in the near term
Bitcoin remains anchored in its major downtrend for almost three months and could continue to retreat to its lows of last year at around $30,000 in the coming weeks.
In any case, this is what the technical analysis of BTC / USD suggests, which remains clearly bearish, with highs and lows falling lower and lower and attempts to rebound - as has been the case for a few sessions - that do not result in any significant increase.
The current attempt to rebound Bitcoin may actually be an opportunity to position itself on the downside since BTC/USD is currently coming back to test a major resistance at $40,000. Given the weak bullish momentum, sellers could quickly regain control at this important threshold, which corresponds not only to a psychological threshold, but also to the September trough sunk last month.
A period of consolidation will be expected before a bullish reversal
If the $40,000 is exceeded, the bearish outlook would be weakened, but this would be an insufficient signal to consider a bullish reversal. For this, it would be necessary to at least wait for an exit from the top of the Bollinger bands of the daily time unit, ideally after a period of consolidation as was the case last year. The market had fallen more than 50% in a few months, then consolidated for several weeks at about $30,000 before embarking on a bull rally to its former highs at about $65,000.
- Entry: Sale under $40,000
- Stop: $42,500
- Goal: $30,000
- Risk/Return Ratio: 4