Bitcoin market finally exited the indecision status quo as bears took over amid the Asian session on Tuesday. The largest cryptocurrency had balanced around $36,000 in the wake of last week’s freefall from $39,000.
Its upside had been limited under a confluence resistance formed by the 50 Simple Moving Average (SMA) and the 100 SMA on the four-hour chart. As hope for recovery dwindled, sellers took advantage, pushing for declines.
At the time of writing, the flagship cryptocurrency barely holds above $32,000. The technical outlook is highly bearish based on the short-term technical picture.
Bitcoin’s bearish cycle could be here
According to NebraskanGooner, a renowned cryptocurrency analyst, Bitcoin “is currently in a bear cycle.” The initial drop from the record high of around $65,000 was nerve-shattering. Bitcoin took a pit stop of approximately $30,000, and recovery ensued. However, little progress has been made above $40,000, with Bitcoin remaining under this level most of the time.
The four-hour hour chart highlights the formation of a symmetrical triangle pattern, discussed on Monday. The bullish prediction of a breakout to $50,000 shut the door on us as a breakdown took precedence. If support at $32,000 fails to hold, the 35% drop from the triangle will likely materialize, sending Bitcoin to $23,000.
Other technical levels adding credence to the bearish outlook are the Moving Average Convergence Divergence (MACD) indicator and the Relative Strength Index (RSI) on the four-hour chart. Both the indicators have vivid bearish signals that may continue calling more sellers into the market.
BTC/USD four-hour chart
NebraskanGooner believes that the next bull cycle would be “bigger than ever despite the ongoing selloff.” Therefore, investors have “to get through the bad to enjoy the good.”
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