- BTC/USD erodes about $3000 from record highs of $41,987.
- Technical charts suggest scope for further downside correction.
- Investors to buy the dips as Bitcoin is far from a local top.
Bitcoin’s (BTC/USD) impressive break through the $35K barrier appears to have lost steam this Saturday, as the bulls snap their four-day winning streak after reaching fresh all-time-highs at $41,987 on Friday.
Despite the corrective pullback of around $3000, the most favorite digital asset remains far from topping out, as suggested by the BraveNewCoin Liquid Index for Bitcoin.
This particular technical index has been extremely accurate at predicting previous market tops and now suggests that bitcoin has plenty of room to rise before a significant correction gets underway.
Bill Miller, veteran investor and mutual fund titan, said that bitcoin is still posed to move higher and even "considerably higher." His comments came after the no.1 coin surged past the critical $40K barrier, further adding credence to the view that the upside bias still remains intact.
"I think it's more a risk management strategy than anything else to have a little money in bitcoin. “One of the things that’s interesting about bitcoin is that it gets less risky the higher it goes,” Miller added.
Although the broader picture favors the BTC bulls, the short-term outlook appears dour, as depicted by the bearish technical setup on the hourly and daily charts.
BTC/USD: Hourly chart
BTC/USD has confirmed a symmetrical triangle breakdown the hourly sticks, opening floors for a test of the measured target near $36,000.
The breach of the 200-hourly moving average (HMA) at $39,207 exacerbates the pain in the crypto coin. The hourly Relative Strength Index (RSI) inches lower towards the oversold region, currently at 33.45, allowing more room for declines.
A bearish crossover, represented by 21-HMA piercing the 100-HMA from above, also collaborates with the bearish view on bitcoin.
Any pullbacks would need to clear critical resistance at $40,130 in order to negate the near-term downside bias. The next on the radar for the bulls would be the record highs near the $42K mark, beyond which the $44K level could be challenged.
-637457717914095588.png)
BTC/USD: Daily chart
A very evident sign of caution for the BTC bulls is seen in the oversold 14-day RSI, which holds firmer at 81.14, as of writing.
Therefore, the price could see an extension to the corrective trend, with eyes set on the immediate relevant support at $35,862. The level is 23.6% Fibonacci Retracement (Fibo) of the parabolic rise that kicked in from the November 26 low of $16,210 to record highs near $42K.
BTC/USD: Additional levels to watch
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.