- BTC/USD broke free from narrow range, losing 3.5% on a daily basis.
- The bearish trend is about to be resumed once $6,400 is broken.
Bitcoin is changing hands at $6,460 at the time o writing. The coin touched the recent high at $6,822 on Saturday and lost nearly 7% of its value since that time with the most substantial damage experienced since the beginning of the week. The volatility is on the rise again after a period of tranquility on Monday; though it is still off the peak touched on September 19.
Bitcoin’s technical picture
From the technical point of view, BTC/USD broke free from the “pennant” pattern visible on a 4-hour chart, which may be interpreted as a strong signal of the short-term trend reversal. A sustainable move below SMA200 (4-hour chart) at $6,650 and below 38.2% Fibo retracement from the downside movement from September 4 peak confirms the theory. The decisive breakthrough increased the selling pressure and pushed the price below SMA50 (4-hour) towards the intraday low of $6,394. As the coin managed to recover above $6,400 handle, there is a chance for consolidation in a channel limited by the above said SMA50 and 23.6% Fibo retracement level.
On the upside, we need a strong move above $6,580 (Asian high) and $6,650 for the recovery to gain traction. This area is guarded by SMA5 – daily and 38.2% Fibo retracement, with the next upside hurdle seen at $6,717 (Monday’s high).
BTC/USD, 4-hour chart-636734441059147797.png)
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