The bitcoin price on Tuesday nursed extensive losses of over 12 percent against the US dollar, stabbing through $5,000 as it did.
BTC/USD Intraday AnalysisThe BTC/USD index is currently trading at the 4513-fiat price level after a minor jump from its intraday low at 4035-fiat. The knee-jerk reaction after a massive sell-off does not confirm a substantial bias shift. It looks more like a bear pennant formation that is likely to extend the bearish action as it overreaches its downside targets.
BTC/USD 1H CHART | SOURCE: COINBASE, TRADINGVIEW.COM
The little rise we are looking at could just be traders closing their short positions. It doesn’t guarantee any substantial accumulation. The BTC/USD rate, therefore, could consolidate for a while before forming another bearish flag, this time targeting new supports for a potential reversal.
Indeed, the world’s leading digital currency is behaving like a reckless altcoin after weeks of stability. It doesn’t leave retail investors with any choice but to wait for things to settle down. Analysts are calling the bottom like they always do, but real accumulation could only appear when big-pocket bulls buy the dip. The events taking place in the bitcoin cash market are leaving investors no choice but to wait.
Our intraday analysis, therefore, can only provide for day traders willing to catch the falling knife. Approach with caution.
As BTC/USD forms a bearish pennant, we are testing its levels as a sign for out breakout/breakdown targets. That said, a jump above the upper trendline could have us enter a long position towards 4797-fiat. Similarly, slipping below the lower trendline could allow us to watch 4313-fiat as our short target. In both places, we are maintaining our stop losses tightly — just 2-pips opposite the direction of the price action would be enough to define our risk management perspective. Period.
Reference:
https://www.ccn.com/bitcoin-price-claws-back-to-4500-but-further-losses-may-lie-ahead/
