With the recent developments in BTCUSD, we do not need to change our bearish bias. Therefore, our price target stays at 25 000 USD.
Negative fundamental factors
Among the fundamental negative factors weighing on the higher price of Bitcoin is the prospect of the FED pursuing more rate hikes in the U.S. and its reduction of the balance sheet. We expect these factors to strengthen USD and, as a result, weaken BTCUSD. Additionally, we still foresee the weakness in the stock market to which the price of Bitcoin is highly correlated; with more declines, we expect risk appetite to drop even further.
Technical analysis - daily time frame
MACD is flattening. Stochastic and RSI are bearish. DM+ and DM- are bearish too. Overall, the daily time frame is bearish.
Illustration 1.01
The picture above shows the bull trap we hinted at two days ago. Since then, the price of BTCUSD fell over 9%. Currently, BTCUSD trades around 29 400 USD; favorably, we would like to see a plunge below 28 600 USD. That would further bolster the bearish case for Bitcoin.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Illustration 1.02
The picture shows how Bitcoin failed to penetrate the sloping resistance; instead, it reversed to the downside.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Negative fundamental factors
Among the fundamental negative factors weighing on the higher price of Bitcoin is the prospect of the FED pursuing more rate hikes in the U.S. and its reduction of the balance sheet. We expect these factors to strengthen USD and, as a result, weaken BTCUSD. Additionally, we still foresee the weakness in the stock market to which the price of Bitcoin is highly correlated; with more declines, we expect risk appetite to drop even further.
Technical analysis - daily time frame
MACD is flattening. Stochastic and RSI are bearish. DM+ and DM- are bearish too. Overall, the daily time frame is bearish.
Illustration 1.01
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Illustration 1.02
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
交易结束：到达目标:
Our price target of 25 000 USD was reached.
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