- black crows set stage for bearish breakout
- Support levels set at 3800
The Bitcoin price has been bearish on the last few hours. The currency has broken support levels at 3860 to achieve new lows below the 3850 mark.
BTC/USD had been in consolidation for a few days now. However, this sideways market was breached to the downwards when the temporary support level of 3860 was broken in the last few hours.
At the moment, bears seem to hold sway, characterized by three black crows candles stick formation. This signifies that we should expect a further dip in price in the short term with support levels placed at 3800.
Looking at the Moving Averages, they have been intertwined for the better part of last week. However, recent indications seem to portray a widening margin between the 21 day MA and the 7 day MA, with the 21 day MA having crossed over the 7 day MA setting stage for a bearish trend.
The RSI is also within the oversold regions, with current levels showing it at below 30. This may serve as strength for the bearish trends seemingly signifying that we are to expect a further dip in price.
Bitcoin Price Forecast
The general market outlook in the next few hours is bearish. We should expect a further dip in price with the next short term target being ta 3800. It is envisaged that at this level (3800), a price reversal may be imminent. However, we will see if the bears will have the strength to rally the price even further south.
The three black crows served as perfect indication for the bearish trend. The bears can take cue from this and drive the price even further south. The RSI also seems to indicate that the market is indeed southbound. Traders can take a short position with target set at 3800. If this is breached and the price rallies father down, then the next target will be at 3750.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency.