Bitcoin futures (BTC1) – Long-term technical picture is still looking upbeat

Bitcoin futures (BTC1) – Long-term technical picture is still looking upbeat

Bitcoin futures (BTC1) kicked off the new week with a bullish gap, but reversed lower in the following hours barely ticking below the past week closing price at 46,250.

However, the long-term technical picture is still looking upbeat. Although the world’s top digital currency was losing ground since its rally halted at the new record high of 69,350, it is still retaining a profound bullish structure of higher highs and higher lows on the weekly chart.

And although the price is still trapped between the 21- and 55-week exponential moving averages and above the 38.2% Fibonacci retracement level of the March 2020 – November 2021 uptrend, the recent corrective wave is likely to continue as momentum indicators are foreseeing a depressed trading in the coming sessions. The MACD is distancing itself below its signal line heading towards the zero line, and the RSI lately dipped below the 50-neutral mark and still pointing south.

In this scenario, if the price dip below the 38.2% Fibonacci level at 44,470 and the neighboring 55-week exponential moving average, it could initially pause around the 50% Fibonacci level at 36,780, before heading towards the 61.8% Fibonacci level at 29,090. Any violation at that point will crucially dampen the current structure and trigger steeper decreases.

On the flip side, a decisive move beyond the 21-week exponential moving average followed by a surge above the September 7^th high of 53,100 shall revive positive impetus turning trader’s focus towards the 65,520-693,50 region linked to April and November peaks.

Overall, Bitcoin ran out of steam after posting a new all-time high and is expected to further stretch the current corrective phase. However, for that view to alter, a sustainably move beyond 53,100 is needed.