Bitcoin price has stronger bearish signals than last week's selloff.
- Bitcoin price has multiple signals targeting levels under $40,000.
- Invalidation of the downtrend is a break of $43,333.
Bitcoin price is printing larger bearish engulfing candles on Monday than those seen last week on the 4-hour chart. The current selloff looks fueled with power and has a few confluence zones pointing at levels sub $40,000.
Bitcoin price action suggests the bears are stronger than before
Bitcoin price selloff looks like it's just getting started as the bears have demonstrated supreme power to start this week's trading session. The current price of $40,780 looks very unlikely to find support. Last week, the Bitcoin price consolidated four days before falling 10% in just one day. Traders could expect a similar behavior as the BTC price consolidated again for four days throughout the weekend and has shown a much more forceful price decline from the bears.
Bitcoin price was forecasted last Thursday to endure further drops in price by FXStreet analysts. Now that the selloff has unfolded, analysts' next question is where it will end. A mirrored move of last week's selloff points to $39,100, while a Fibonacci projection tool has a 2.618 level in the mid $38,000 zone. Both targets will easily get breached with the lack of bullish defense displayed in the current BTC price action.
BTC/USDT 4-Hour Chart
Traders can either jump into the downtrend and wait for another price pattern to surface on the 4-hour chart. Invalidation will be a price spike above $43,333. If this were to happen, the $50,000 BTC price target would be back on the table, resulting in a 20% increase from the current Bitcoin price.
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
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.