Bitcoin opened with a downside gap last Monday, breaking below the upside support line drawn from the low of July 20th. The crypto had its ups and downs during the week, and yesterday, it fell near the 45040 barrier, marked by the inside swing highs of September 23rd and 24th. In our view, the near-term outlook remains negative, but we would like to see a decent break below 45040, before we start examining further declines.
Such a break may initially encourage declines towards the towards the 40740 or the 39400 zones, marked by the lows of September 29th and 21st respectively. However, if neither barrier holds, then the bears could dive towards the 34440 zone, marked by the low of July 26th.
We will start examining the bullish case again, if we see a strong recovery back above 59340, which provided resistance between November 21st and 30th. Bitcoin will be well above the aforementioned upside, and the bulls may decide to push towards the 62615 territory, the break of which could allow extensions towards the 66100 barrier, marked by the high of November 15th. If they don’t stop there either, then a break higher could pave the way towards the record peak of 68920, or even the round number of 70000.
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