fxs_header_sponsor_anchor

Bitcoin Weekly Forecast: BTC bearish fractal forecasts correction to $25,000

  • Bitcoin price trades around $27,000 and $28,000 for the fifth consecutive day.
  • BTC fractal remains intact, preventing BTC from retesting the $30,000 psychological level.
  • A lack of buying pressure could see BTC crash to $25,000 or lower.
  • A decisive daily candlestick close above $30,000 will invalidate the bearish outlook. 

Bitcoin (BTC) price hovers around $27,600 and shows no directional bias on the daily chart. Liquidity pockets are present in both directions, leaving traders guessing where BTC will go next. 

Also read: Bitcoin price takes a hit as US Nonfarm Payrolls for September nearly double expectations, rising by 336,000

Bitcoin price fractal holds steady

Bitcoin (BTC) price fractal discussed in a previous publication has faced rejection at the 200-day Simple Moving Average (SMA) at $28,000 and faces a strong sell-off. This caused the October 2 candlestick to close below it. Since then, BTC has been consolidating in a $1,300 range as it trades between $27,000 and $28,000.

The bearish fractal is in play, and if history repeats, Bitcoin price should head lower to the next key support level at $25,762. A breakdown of this barrier could cause BTC to retest the $25,000 psychological level and the subsequent support level at $20,431.

BTC/USD 1-day chart

But the bearish fractal is not something that is written in stone. If Bitcoin price overcomes the 200-day SMA at roughly $28,000 and produces a daily candlestick close above the $30,000 psychological level, it will invalidate the fractal.

There are a few reasons why an upward movement could occur – an upside deviation in the jobs report by a large magnitude, approval of a spot Bitcoin Exchange-Traded Fund (ETF), or the US Securities and Exchange Commission (SEC) losing another lawsuit against a crypto firm, to mention some examples. 

Positive news could trigger a short-term bullish move in Bitcoin price. Hence, traders must prepare for an invalidation of the bearish outlook. 

Read more on Bitcoin's bearish fractal

Week ahead: Fed speech and NFP likely to dictate crypto market moves this week

Bitcoin Weekly Forecast: BTC recovery rally could be bull trap in disguise, here’s why

Bitcoin price action culls $30 million longs ahead of Fed Chairman speech

Bitcoin Weekly Forecast: BTC downside likely after 20-week EMA culls bulls

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.