Published June 12, 2022
Over the past four weeks, the Bitcoin(BTC) price wavered between the $32000 and $28600 mark. However, on June 11th, the sellers settled this consolidation with a $28600 breakdown, suggesting an extension in the overall downtrend. Thus, this support fallout opens the door for another 5.2% fall before it hits the nearest support at $26700.
The early may sell-off in BTC/USDT pair took a breather near the $28500 mark as traders witnessed a high demand pressure. Furthermore, the coin buyers’ several attempts to recover from the new support resulted in a narrow range.
The growing uncertainty in the crypto market of whether the BTC price has found a bottom carried the consolidation phase for nearly five weeks. However, on June 11th, the coin price breached the aligned support of $28600 and the 0.618 Fibonacci retracement level, indicating the resumption of the prevailing downtrend.
Today, the BTC price fell 3.5%, providing an excellent follow-up on the support breakout. If the selling pressure persists, the coin price will plunge to the next support zone at $26700 to $26000.
However, an expected pullback may retest the flipped resistance of $28600 and replenish the bearish momentum for further downfall.
The BTC price poked the lower band of the Bollinger band indicator, accentuating a sudden and unhealthy drop. This overextending selling supports the reversal theory to retest the $28600 mark.
However, the daily-RSI indicators’ failed attempt to sustain above the equilibrium(50%) indicates the sellers have not accepted defeat. Furthermore, these downsloping slopes indicate growth in underlying bearishness.
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