Matt Simpson, CFTe, MSTA
CityIndex
Bitcoin’s shakeout at the highs continues after tumbling over 8% early Asia. Over 5% of which, was shed within 30 minutes.
Thursday’s bearish engulfing candle served as a warning all was not well at the highs, and it invalidated earlier analysis for $8.5k to remain supported ahead of another next leg higher. Furthermore, today’s plunge places a lower high at $8,825 to suggest we’re on for a deeper correction against the dominant trend.
$8k is a key level to monitor and we’ve just seen an intraday break beneath it. The area houses several technical levels, including the 20-day eMA, 50% retracement level and bearish engulfing low. Moreover, last week’s Rikshaw Man Doji outside of the upper Keltner band is a sign of exhaustion, and a clear break beneath $8k confirms a near-term reversal to pave the way for mean reversion.
The break of the four-hour trendline ahead of the break below $8k is a positive sign for bears. However, we’d expect some noise around this key level, so bears could wait to see if $8k turns into resistance or fade into rally towards the broken trendline. Downside targets include the $7,436 and $7,000 lows, although we’d also look for signs of bearish exhaustion around these key levels to signal a potential base. Until then, momentum points lower.
CFD and forex trading are leveraged products and can result in losses that exceed your deposits. They may not be suitable for everyone. Ensure you fully understand the risks. From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material. As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed
Recommended Content
Editors’ Picks
Axiom’s volume surpasses $100M as meme trading platform war escalates on Solana
Axiom meme coin trading volume hit $101 million for the first time, surpassing other platforms on Solana. Axiom accounts for 30% of the ecosystem’s trading users, followed by Photon and Bullx at 24% each.
Bitcoin aiming for $95,000 as Global M2 money supply surges
Bitcoin (BTC) price edges higher and trades slightly above $85,500 at the time of writing on Tuesday after recovering nearly 7% the previous week. The rising Global M2 money supply could be a favorable signal for both Gold and Bitcoin.
Top 3 gainers Brett, Story and Virtuals Protocol sparkle as Bitcoin eyes $90,000
Cryptocurrencies have sustained a buoyant outlook since last week as US President Donald Trump’s tariff war was paused for 90 days, except for China, propping global markets for lifeline relief rallies.
Three altcoins to watch this week: ALGO, MANA and JASMY show bullish signs
Algorand, Decentraland and JasmyCoin hovers around $0.19, $0.27, and $0.015 on Tuesday after a double-digit recovery last week. ALGO, MANA and JASMY approach their key resistance levels; breakout suggests a rally ahead.
Bitcoin Weekly Forecast: Market uncertainty lingers, Trump’s 90-day tariff pause sparks modest recovery
Bitcoin (BTC) price extends recovery to around $82,500 on Friday after dumping to a new year-to-date low of $74,508 to start the week. Market uncertainty remains high, leading to a massive shakeout, with total liquidations hitting $2.18 billion across crypto markets.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.