Bitcoin at risk of deeper drop as BTC slips below key support levels

Key point:

• Selling accelerated connected Tuesday, raising the accidental for a Bitcoin terms driblet to $104,000.

Bitcoin (BTC) pulled backmost to $105,250 connected Tuesday aft failing to transverse supra the $109,000 people connected Sunday and Monday. Bitfinex analysts said successful a marketplace study that Bitcoin could person formed a section top oregon whitethorn participate a play of consolidation. 

Let’s survey the charts to find the important enactment and absorption levels to ticker retired for.

Bitcoin terms prediction

Bitcoin has been sandwiched betwixt the downtrend enactment and the moving averages, indicating a imaginable scope enlargement successful the adjacent fewer days.

BTC/USDT regular chart. Source: Cointelegraph/TradingView

The upsloping moving averages awesome a flimsy borderline to the bulls, but the comparative spot scale (RSI) adjacent the midpoint suggests a deficiency of bullish momentum. If the terms slips and sustains beneath the moving averages, the BTC/USDT brace could slump to $104,500 and beneath that to $100,000. Such a determination retains the brace wrong the bearish descending triangle pattern.

The bearish setup volition beryllium invalidated if the terms rebounds disconnected the moving averages and rises supra the downtrend line. That could propel the brace to the neckline of the inverse head-and-shoulders pattern.

Related: Bitcoin targets $200K arsenic nett metrics participate ‘cautiously optimistic’ zone

BTC/USDT 4-hour chart. Source: Cointelegraph/TradingView

The brace has breached beneath the moving averages, indicating profit-booking by the short-term traders. Buyers are expected to support the $104,500 level with each their mightiness due to the fact that if they neglect successful their endeavor, the brace could descend to the intelligence enactment astatine $100,000.

The archetypal motion of spot volition beryllium a interruption supra the 20-exponential moving average. That clears the way for a rally to the downtrend line, wherever the bears are expected to measurement in. If buyers pierce the downtrend line, the brace whitethorn situation the all-time precocious astatine $111,980.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.