Sideways Channel in Play
The BTC/USD closed at 53,822 after placing a high of 56,476 and a low of 53,822. Bitcoin fell again on Wednesday and reach below 54,000 level amid the recent warning by JPMorgan. The strategists at JPMorgan Chase & Co., Nikolaos Panigirtzoglou, warned on Wednesday that if the popular cryptocurrency does not return to the $60,000 level soon, it could soon be at risk of extending its losses to maximum level.
Over the past few days, Bitcoin has experienced a steep liquidation similar to the middle of last February, middle of last January, or the end of last November. Quick recoveries and further price increases have met the previous three dips, but this time looks different. It is yet to see whether Bitcoin will repeat its prior episodes or not; however, the strategists believed that repeating those patterns was less likely this time around due to weaker flow.
Some other companies also joined in, including Tallbacken Capital Advisors CEO Michael Purves, who also said that Bitcoin’s bullish rally could be at crossroads. Furthermore, Scott Minerd, the global chief investment officer of Guggenheim Partner, claimed that Bitcoin had overstretched itself at a dangerous speed. It means the king of cryptocurrencies could dramatically decline in value over the coming weeks.
Minerd, a member of the Federal Reserve Bank of New York’s Investor Advisory Committee on Financial Markets and Chairman of Guggenheim Investments, has said that Bitcoin would have a significant correction in the coming days. He even said that prices could pull back to 20,000 to 30,000, which would be a 50% decline. He added that the exciting thing about Bitcoin was that it had seen these kinds of drops before.
BTC/USD Intraday Technical Levels
Pivot point; 55491.3
BTC/USD - Technical Outlook
Technically, the BTC/USD hasn’t changed as it continues to trade with a bearish bias at 55,642 level. The pair is consolidating in a broad trading range of 57,657 level to 53,367 level, and lack of trading volume keeps the pair’s movement limited. On the 4 hour timeframe, the 20 & 50 periods EMA are extending resistance at 55,750 and 60,019 levels. The RSI and MACD values suggest bearish bias among investors; therefore, the pair is looking for a bearish breakout. On the downside, the breakout of the 53,350 support level opens up further room for selling until the next support area of 50,015, whereas resistance stays at 57,657. All the best!
JOIN LONGHORNFX TODAY
24/7 live support, lightning fast withdrawals, guaranteed safe and reliable trading platforms with a true ECN broker.