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On August 17th, the cryptocurrency market encountered a substantial wave of selling with Bitcoin leading the downward charge. This notable sell-off was triggered by SpaceX’s announcement to divest its Bitcoin holdings, effectively magnifying the selling pressure across the crypto landscape. Thus, the BTC price showcased a 7% intraday loss leading to a breakdown below the multi-month support trendline. This breach signals the possibility of an extended correction phase for the largest cryptocurrency
Bitcoin Daily Chart: Key Points
- Within a fortnight, the BTC price plunged from the $30789 upswing to the current price of $26462 registering a 14.4% loss
- The Ethereum fear and greed index at 39% reflects negative sentiment among traders
- The intraday trading volume in Bitcoin is $17.4 Billion, indicating a 49% loss.
Over the course of the past nine months, BTC price enjoyed a robust uptrend bolstered by an ascending support trendline. Throughout this period, the lower trendline acted as a stronghold for buyers, encouraging accumulation during price dips.
However, the equilibrium was disrupted on August 17th when Bitcoin suffered a 7% decline and pierced through the dynamic support. This breakdown has the potential to shift market sentiment from a “buying on dips” approach to a “selling on rallies” strategy.
Should the coin price manage to maintain its position below the breached support, the mounting selling pressure could propel Bitcoin value toward critical support levels at $25000 and subsequently $21500. A breakdown below the $25000 swing low would signal the seller undermined the principle of Dow theory and also provide further affirmation of a prolonged period of decline.
Right Time to Short Bitcoin?
Given this backdrop, a minor pullback in BTC price is anticipated. This correction could potentially facilitate a retest of the breached support trendline. However, the sustainability of the coin price below the ascending trendline could present an attractive short-selling opportunity for traders who are keen on capitalizing on the prevailing downward momentum.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.