Bitcoin price continues its bearish move as it trades with a heavy tone. The digital asset found no buyers on its way down from $40k and now tests the lower edge of a horizontal consolidation.
From a technical perspective, this pattern can be both bullish and bearish for Bitcoin. On the bullish take, we may see some kind of a triple top formation at $32k, followed by a sharp reversal. On the bearish take, a close below $30k should trigger more downside toward the $24k. Regardless of the future direction, the measured move as suggested by the horizontal range is about $8k, projected either from the upper or lower edge of the range.
Another bearish take on Bitcoin is given by MicroStrategy. The company announced yesterday that it completed its purchase of close to $500 million worth of Bitcoins.
The problem is that the price declined all the time the company bought half a billion worth of Bitcoin. Naturally, the next question is who is selling and why? Where are those “diamond” hands, that “hodler” spirit?
Bulls may want to wait for a close above $40k before going long with a target at $50k and a stop at $35k. Bears may want to wait for a daily close below $30k before selling with a stop at $35k and a take profit at $24k.
Follow Mircea on Twitter.
