Bitcoin — Still Battling Trend Line!

Bitcoin dropped ~6% after touching 70k on Monday. Unlike last week, the U.S. session dumped the price while the Asian and European sessions showed strength.

However, yesterday's weak performance was also influenced by the Middle East news and Israel's rocket attack. Nevertheless, this news is usually quickly absorbed.

Important Levels 📊

First, it is important that Bitcoin holds the trend line, marking its uptrend since the beginning of July. A close below this line can trigger more downside potential and bring support at 63k back into the game.

Reversing at this point, on the other hand, would lead to another higher low and should quickly bring us back to the 70-level.

Technical Indicators 📉

The momentum indicators support the bullish case. The MACD, one of the most important indicators, shows bullish momentum. Moreover, the Stochastic RSI has reached oversold levels. Recently, this was an excellent indicator to time the reversal.

Trading Signals 📉

While the 1W and 1D do offer new trading signals, the 4H signals support the bearish case with a bearish MACD and EMA crossover.

What's Next? ➡️

At this level, it is hard to predict the next move. Overall, the bullish trend and momentum are still valid. Therefore, I think the chances for a reversal are higher. However, it will be important to monitor the trend line very closely since a drop can't be excluded.

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* Picture source: Crypto OS