Bitcoin has been under pressure along with many of its peers in the top 100 cryptos based on market cap. Its trading volume, on the other hand, continues to lead the market along with its market dominance. More companies are now accepting Bitcoin as a payment method than ever, and once we see the real bullish movement start again, we can expect to see more people jump back on the Bitcoin investing wagon. Until then, however, Bitcoin might drop back to 2018 lows and beyond based on some technical observations.
BTC/USD Technical Analysis
Looking at the daily chart you’d notice that BTC/USD has been forming lower highs since December 2017 when its bubble burst. Its key support level has remained below $6,000, at $5,850 to be precise. Each time its aimed to recover, its attempt has been capped at a lower resistance level than the time before. Hence the “lower highs.”
With the daily Ichimoku cloud flattening out, this could very well be the calm before a storm. But we still can’t say for sure that the storm will breakout to the upside first.
Analyzing the long-term pressure, you can argue that Bitcoin could revisit $5,850 once more. If its able to break below it, we might even see a revisit of $4,969 and $3,572. While our long-term outlook remains bullish on Bitcoin, market sentiment might not have Bitcoin’s back in the medium term.
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