This is a daily analysis of Coindesk analyst and chartered market technician Omkar Godbole.
Bitcoin
remains susceptible to longer disadvantage, after losing over 7%since he hit record heights over $ 124,000 on Thursday.
Bullish Momentum fades
The weekly chart (Candlestick -Format) shows that BTC’s ongoing decline follows repeated bull failure to ensure a foothold over $ 122,056, Fibonacci -golden conditions. It also marked the inability to keep gains over the significant long -term resistance trendline that connects the Tyrmarket heights in 2017 and 2021.
In addition, the weekly stochastic oscillator has been rolled over from the overbought zone above 80, signaling a potential correction ahead.
Daily chart
On the daily chart, BTC’s latest light is broken under the Bullish Trendline that extends from April-low, after Friday’s Bearish Outside-Day Light, signaling a potential shift against seller’s dominance.
Together, these technical signals indicate an increasing downward risk of BTC in the short term, with a potential retest of $ 11,982, the point from which the market was higher on August 3rd. A violation of this level would shift focus to 200-day simple sliding average of about $ 100,000.
A potential reversal higher to over $ 118,600 (Sunday’s high) During the coming day would weaken the Bear case.
- Resistance: $ 120,000, $ 122,056, $ 124,429.
- Support: $ 111,982, $ 105,295 (31.8% FIB Retracement of April-August-rally)$ 100,000.
