Bitcoin Extends Tumble; More Downside Likely
2022.05.12 15:16
BTC/USD opened with a negative gap this week and every day since then has been a red one. Today, the crypto hit support near the 25625 zone, marked by the low of Dec. 29, 2020, and then, it rebounded somewhat. Last Thursday, the crypto broke below the upside support line drawn from the low of Jan. 24, as well as below the key support zone of 373980. In our view, that move was the invitation to the bears.
Now, even if today’s recovery continues for a while more, we believe that the bears could still take charge again from near the 32845 zone, marked by the high of Jul. 21, and this is because we can mark the latest downtrend with a downside line drawn from the high of Mar. 29.
So, a slide from near 32845 could result in another test near 25625, where a break would confirm a forthcoming lower low and could carry extensions towards the 21710 and 19755 zones, marked by the low of Dec. 21 and the inside swing high of Dec. 1, 2020, respectively. If neither zone is able to halt the slide, then we may see the bears diving to the low of Nov. 26, 2020, at around 16135.
Shifting attention to our short-term oscillators, we see that the RSI fell below its 30 zone and still points down, while the MACD remains below both its zero and trigger lines, pointing south as well. Both indicators detect strong downside speed and support the notion of further declines in this crypto.
In order to start examining the bullish case, we would like to see a recovery above the key resistance zone of 52045. The price will also be above the upside resistance line drawn from the high of Jan. 13, and the bulls may get encouraged to push the battle towards the 57575 barrier, or the 59315 zone, marked by the high of Dec. 3 and November 30th, 2021.
If they are not willing to stop there, then we may see them climbing to the 66275 or 68835 barriers, marked by the highs of Nov. 15 and 10, respectively.
Bitcoin daily chart technical analysis.
