Bitcoin: Profile remains negative after testing $ 40K, key bearish signal in sight


Bitcoin daily chart

2/2 – Cryptocurrency investors were rocked again yesterday, when the market briefly fell below $ 40,000, but the swift reaction from buyers, who pushed BTC / USD above that key threshold within minutes of trading. test, could be the first signal of a lasting rebound in cryptocurrency.

However, the technical environment remains strongly bearish, and Bitcoin and it is still far too early to confirm that the time has come to buy Bitcoin on its low.

Indeed, studying the daily chart shows that BTC remains stuck below a downtrend line that stretches from the November record close to $ 69,000. Knowing that this line is currently around $ 46,000, a significant increase from current prices would be necessary to cross it.

And even in the event of a return above that trendline, Bitcoin will directly face several key hurdles, such as the 200-day MA, the $ 50K threshold, and the chart resistance of $ 52,000, a threshold that can be breached. would begin to improve Bitcoin’s chart profile more significantly.

In addition, Bitcoin could register a new major bearish signal over the next few days. This is because the 50-day moving average is now within $ 1,000 of the 200-day moving average.

However, a cross of the 50-day MA below the 200-day MA would constitute a major bearish signal universally recognized by traders in all markets, and called “death cross”, and could fuel bearish sentiment.

Regarding the thresholds to watch downwards, it will be recalled that Bitcoin also had the low of September 21 yesterday towards $ 39,700, a threshold which, combined with the psychological threshold of $ 40,000, forms the first area of ​​credible support visible on the daily chart. Then the next support will be around $ 37,500.

Finally, let us remember that the weakness of Bitcoin and the cryptocurrency market in general since last week seems fueled by the idea that the Fed is leading a hawkish turn in its monetary policy. Indeed, the Fed Minutes released the week revealed that the Fed could start reducing the size of its balance sheet as early as summer 2022.

Yesterday, a note from Goldman Sachs (NYSE 🙂 announcing that the bank is now forecasting fueled expectations of an increasingly flexible Fed.

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