Bloodbath in the cryptocurrency market as Bitcoin’s overhead pressure surges – downside eyes $17,500

Bitcoin-Institutional-Buying
  • Bitcoin refreshes lower price levels at $18,000 as declines loom towards $17,500.
  • BTC/USD will invalidate the bearish outlook if the price closes the day above $18,000 and perhaps steps above the 100 SMA.

Bitcoin was recently rejected at $19,500, forcing buyers to seek refuge at lower levels. The flagship cryptocurrency tried to hold above $19,000 but the headwind increased, perhaps due to exhaustion on the part of the bulls.

The dive under $19,000 confirmed the bearish outlook, leaving sellers hopeful that BTC can extend the bearish leg to $18,000. Indeed, the support at $18,000 was tested but on the brighter side, it was not broken.

At the time of writing, Bitcoin is trading at $18,240 after failing to sustain the recovery above $18,250. The bearish outlook is still fresh and declines are likely to continue, especially if BTC closes the day under $18,200.

BTC/USD 4-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

On the other, Bitcoin is seen to have been trading within a descending parallel channel that failed to confirm a bull flag. It is essential that the lower boundary is guarded at all costs, otherwise, the bellwether cryptocurrency might dump to refresh the price level at $17,500, as highlighted by the 200 Simple Moving Average.

For now, the least resistance path is still downwards, until Bitcoin embraces formidable support. Here, buyers will concentrate on building a new bullish outlook with the aim of hitting highs above $20,000.

On the upside, holding above $18,200 might help to bring stability back to the market. It is this stability that will allow buyers to join the market, hopeful that the flagship cryptocurrency will make its way above $19,000. Trading above 100 SMA would be the first step to lifting off to higher price levels.

Bitcoin intraday levels

Spot rate: $18,240

Relative change: -50

Percentage change: -0.3

Trend: Bearish

Volatility: High

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from Coingape https://coingape.com/bloodbath-in-the-cryptocurrency-market-as-bitcoins-overhead-pressure-surges-downside-eyes-17500/

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