This is a daily analysis by Coindesk analyst and chartered market engineer Omkar Godbole.
Bitcoin
The bullish momentum will decline
The weekly chart (Candlestick format) shows that the continuous decline in BTC follows repeated bull failures to secure a foothold above the Fibonacci Golden ratio of $122,056. It also showed that it cannot outperform the important long-term resistance trends connecting bull market highs in 2017 and 2021.
BTC weekly charts. (tradingView/coindesk)
Additionally, weekly stochastic oscillators roll from over 80 zones, indicating potential fixes ahead.
Daily Charts
The daily chart shows BTC’s latest candles break under the bullish trendline extending from the lows in April, showing a potential shift that marks a potential shift to seller advantage on Friday.
BTC Daily Chart. (TradingView)
Together, these technical signals indicate an increase in BTC’s negative side risk in the near future, with a potential retest of $11,982, a point that saw the market rise on August 3rd. Violating this level will result in a simple 200-day moving average of around $100,000.
If the potential reversal exceeds $118,600 (high Sunday) during the day before, the bear case weakens.
- resistance: $120,000, $122,056, $124,429.
- support: $111,982, $105,295 (31.8% FIB retracement for April-August rallies), $100,000.
