Missed the double top breakout on bitcoin?
Price recently fell through the neckline of this reversal pattern, hinting that a longer-term slide is in the works.
BTC/USD seems to be shaping up for a quick retest of the area of interest, so keep your eyes peeled in case the trend resumes!
Bitcoin (BTC/USD): 4-hour
Bitcoin (BTC/USD) Daily Chart by TradingView
Bitcoin has struggled to break past the solid barrier at $72,000 in the past few months, forming a double top reversal pattern and breaking below the neckline to concede that bears could have their way.
However, dollar weakness on rising September Fed rate cut speculations have allowed BTC/USD to pull up from its recent lows around the $53,000 region.
Are sellers just waiting for a chance to hop in at better levels? Or are buyers looking to restart the “Trump trade” crypto rally?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on bitcoin and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!Note that the broken neckline support is spanned by the 38.2% to 50% Fibonacci retracement levels around $60,000 to $62,000 so there could be a lot of eyes on this area of interest. Holding as a ceiling could send bitcoin back to its latest swing low or to fresh ones at S2 ($50,867) then S3 ($43,279).
On the other hand, a move past the resistance area at the Fibs could clear the way for a move back to the highs near R1 ($70,265) or higher.
Just don’t forget that the 100 SMA is above the 200 SMA for now to reflect the presence of bullish vibes but that the gap between the indicators is narrowing to hint at a potential downward crossover.
Better keep tabs on this week’s set of top-tier catalysts to gauge USD direction and overall risk sentiment, too!
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