The cryptocurrency market experienced notable changes this week as BTC/USD encountered a sharp decline. The price dropped approximately 6% during early trading on Monday, September 18, signaling an important shift in market dynamics.
Bears Regain Control in BTC/USD
The cryptocurrency pair retraced more than 50% of its recent uptrend, which ranged from a low of 80,514 to a high of 93,052. This movement suggests that the corrective phase from the eight-month low of 80,514 may be concluding.
Current Market Sentiment
After several recovery attempts, larger bears regained control as efforts were consistently hindered by the falling 20-day moving average (DMA) and the upper limit of the weekly cloud. A critical breakdown below the psychological support level of 60,000, which also marked the floor of the latest four-day consolidation, confirmed the bearish sentiment.
Technical Analysis
Currently, the daily moving averages have reverted to a fully bearish configuration. Negative momentum is building, further contributing to a deteriorating short-term outlook. A close below the previously breached 50% retracement level of 86,783 signifies that fresh bearish activity is likely, leading to a potential target at 85,304.
Support and Resistance Levels
- Resistance Levels:
- 86,783
- 88,262
- 88,903
- 90,000
- Support Levels:
- 85,304
- 83,473
- 80,514
- 80,000
Should the price drop below 85,304, further declines could test the Fibonacci level of 76.4% at 83,473. Breaking this could expose key support levels at 80,514, the multi-month low established on November 21, and the psychological mark of 80,000.
In conclusion, potential price upticks are anticipated to be capped beneath the recently breached 10-day moving average of 88,903, maintaining the pressure on near-term bears.
