BTC/USD Outlook: Bearish Below $18000
- Bitcoin bulls gain traction above prior resistance turned support at key psychological level of $19000
- BTC/USD posts double digit gains as bulls’ eye 2017 high
- Cryptocurrency buoyed by USD weakness
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Bitcoin prices have benefited from a weaker US Dollar that has continued to drive the demand for risk assets. As the FTX debacle and restrictive monetary tightening remain key catalysts for the major cryptocurrency, both technical and fundamental factors will likely contribute to driving the short and longer-term move.
With expectations of a less-hawkish Fed and a shift in sentiment supporting the recent move, a breach of the 2018 high $17234 provided BTC/USD the opportunity to retest $19000.
After months of trading within the confines of a well-defined range below the 50-day MA (moving average) around $16995, a break of the $17000 psychological level has allowed bulls to drive prices back towards the 200-day MA holding as resistance at $19510.
Bitcoin (BTC/USD) Daily Chart
Chart prepared by Tammy Da Costa using TradingView
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Bitcoin (BTC/USD) Technical Levels
While a move higher could bring the 2017 December high of $19666, BTC/USD has risen over 12% over the past week which could place pressure on the upside move.
If bullish momentum gains traction above $19500, a retest of $19666 and above $20000 could pave the way for short-term continuation towards $22781.
Bitcoin (BTC/USD) Weekly Chart
Chart prepared by Tammy Da Costa using TradingView
However, as the macro-economic backdrop continues to weigh on speculative assets, a move below $19000 and below $17792 could continue to drive bearish momentum driving BTC/USD back towards the 50-day MA at $16695.
— Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
