This is a daily analysis of Coindesk analyst and chartered market technician Omkar Godbole.
Bitcoin has violated key support levels in a sign of rising bearish momentum that suggests a risk of a slide to $ 100,000.
The leading cryptocurrency by market value fell 6.5% in August, ending the four-month winning row like the US-built spot exchange traded funds (ETFS) Bled $ 751 million, according to Data Source Sosovalue.
The recent price drop saw Bitcoin breaking under several key support levels, including the ichimoku cloud, and 50-day and 100-day simple moving average (Smas). It also pierced crucial horizontal support zones formed by May high at $ 111,965 and the December height of $ 109,364, according to the daily chart taken from TradingView.
These collapse emphasizes growing market weakness, confirming a bearish shift in key momentum indicators such as Guppy Multiple Moving Average (GMMA) and the MacD histogram.
The short -term exponential sliding average (Ema) Band of GMMA (green) have crossed under the prolonged band (red)that signalizes a clear bearish momentum shift. Meanwhile, the weekly MacD histogram has dropped below zero, indicating a transition from a bullish to a bearish trend.
Together, these signals indicate a probability of a sustained sale, which potentially drives the price down to the 200-day simple sliding average (SMA) to $ 101,366 and possibly to $ 100,000 mark.
The negative technical prospects are in line with seasonal trends that historically show September as a Bearish month for Bitcoin. Since 2013, BTC has delivered an average return of -3.49%and closed lower in eight of the last 12 months, according to Coinglass data.
As for bulls, it is crucial to overcome the lower height of $ 113,510, which is set on August 28, crucial to neglect the bearish prospects.
- Support: $ 105,240 (38.2% FIB Retracement of April-August Rally)$ 101,366 (the 200-day SMA)$ 100,000.
- Resistance: $ 110,756 (the lower end of the ichimoku -cloud)$ 113,510 (the lower high)$ 115,938 (the 50-day SMA).
