Bitcoin’s daily outlook is becoming more bearish with the latest drop, although it remains bullish on the macro level. Selling could get worse as the fear and greed index reaches 50 with a dominance of 56.2%.
The fear of missing out – FOMO on Bitcoin’s parabolic bull run has significantly cooled off amongst most traders and investors since the price dropped from the $70k region late last month.
In fact, the positive sentiment has quickly changed to negative as fear uncertainty and doubt – FUD set into the market. Due to this, Bitcoin’s next major move now looks very dicey on the daily timeframe.
However, BTC has initiated another drop after failing to push above the $62.8k last Thursday. The market looks scary as $44k could be the next sub-level for the asset in the ongoing drawdown.
Looking closely at the market, Bitcoin’s correction is still in play following a lower low and lower high movement that started from the $73,777 high in March. As seen on the daily chart, this price movement is captured in a broadening descending wedge.
The only condition for a bull run lies in a wedge break-up. Otherwise, BTC will continue to correct lower in this wedge until it finds a break.
BTC’s Key Levels To Watch
Ending retracement last Thursday, Bitcoin lost $60k and is now charging back at May’s $56,552 and July’s $53,486 support. Below them lies the current monthly $49,000 support before breaking lower.
In the latest drop, the $59,704 and $62,745 levels are now considered close resistance levels for BTC. If it retakes those levels, the resistance to watch next would be the $66,650 level that cracked.
Key Resistance Levels: $59,704, $62,745, $66,650
Key Support Levels: $56,552, $53,486, $49,000.
- Spot Price: $58,168
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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