Bitcoin price on Tuesday depreciated against the US Dollar by almost 3.5 percent as the selling sentiment throughout the crypto-market continued to intensify.
The BTC/USD opened today at 6389-fiat after rising from the low near 6218-fiat from the previous day. The pair couldn’t continue the upside correction right from the beginning of the today’s Asian trading session and experience significant sell-off as the day matured. The bearish sentiment also rippled throughout the European trading session, bringing BTC/USD further down. Just ahead of the beginning of the US session, the pair had established its intraday low near 6174-fiat. It is valued at 6251-fiat at the time of this reporting.
The cryptocurrency market capitalization comprehensively lost more than $4 billion worth of valuation on Friday, while the Bitcoin’s dominance reached to its 2018’s best.
Bitcoin continues to be inside a long-term descending triangle and, with no surprise, can retest its previous bottom near circa 5760-fiat. A bearish crossover between the 100H SMA and 50H SMA on the hourly BTC/USD chart could further confirm to an extended selling action in near-term. The pair, in that case, would easily break below the September’s low around 6128-fiat, and target new support levels on its way south, 6000-fiat being the psychological one.
At most, we are forming a bearish pennant with the current sideways action which could soon result in another pole formation to the downside. BTC/USD is cautious amidst the overall crypto-washout. But for how long is the question.
In the times of uncertainties, our intraday strategy can at least help us recover some medium-term losses by making small profits from intrarange volatile actions. That said, let’s check out the positions we are looking at for today.
The range we are going to watch today is defined by symmetric triangle formation in the chart above, with an extended focus on the 38.2% and 0% Fibonacci retracement on a swing from 7052-high and 6162-low. Our intra-triangle approach is simple: entering a long towards channel resistance on a bounce from channel support, and entering a short towards channel support on a pullback from channel resistance.
We will also be keeping our eyes open for potential breakout and breakdown actions. A breakout above channel resistance would have us put a long position towards 6500-fiat while keeping a stop loss ready around 3-pips below the entry point. A breakdown below channel support would, meanwhile, enable us to place a short entry towards 6014-fiat, a proven support from mid-August and our downside target.
Featured image from Shutterstock. Charts from TradingView.