Bitcoin Loses Uptrend Structure, $71,000 Is An Important Boundary
Oil prices are still maintaining above the $100 mark, while Bitcoin $BTC has just lost a fairly important technical signal: the series of higher lows has not been sustained after a strong rejection at the $76,000 level.
In my view, this is no longer just a simple correction, but it is starting to resemble a continuation of a downtrend more.
The scenario I lean towards right now is that Bitcoin could continue to be pushed down and sweep through the area below 60,000 USD. It sounds negative, but if it happens, that would actually be a quite ideal zone for a new accumulation phase.
The market often does not provide opportunities too easily, and the areas that make the majority lose patience are often where the foundation for the next phase is created.
Of course, Bitcoin is not going solo. Everything right now has a fairly clear correlation with macro indicators and the risk-on sentiment in the overall market. If the indicators rebound thanks to a catalyst from news, capital flow, or some macro factor, then Bitcoin will likely react in a similar manner.
But if that does not happen, the possibility of further decline is still a brighter prospect.
For me, the neutral zone for this scenario is at 71,000 USD. If the price clearly reclaims that level, the short-term structure will change and I will have to reassess the entire context.
#BTC
