Bitcoin Price Forecast: BTC/USD Violates Triangle – $28,500 Target

  • David Tice Comments Bitcoin Is Very Dangerous to Hold Today
  • Stronger Dollar Pushes Bitcoin Below $30,000 Level
  • Today’s idea is to place a sell limit at 30,052 to target 29,250 and 28,650.

The BTC/USD coin failed to stop its previous long downward rally and dropped further around $30,000. BTC’s price extended its decline below the $30,000 support against the U.S. Dollar. BTC remains at a risk of a larger decline below the $29,000 support zone. Bitcoin price forecast remains strongly bearish as it has violated the double bottom support. 

The Bitcoin price is trading near $29,725.23 with a twenty-four-hour trading volume of $23,667,129,891. Bitcoin is dropped by 6.60% in the last twenty-four hours. It even broke the $30,000 swing low and settled well below the 100 hourly simple moving average. 

The Bitcoin could face further losses if it fails to recover above the $31,200 and $31,500 resistance levels. Initial support on the downside is around $30,500 level. The 1st-major support is now near the $30,200 level. The primary support is now near the $29,500 level. A close below the $29,500 level could trigger a sharp decline in the near term.

David Tice Comments Bitcoin Is Very Dangerous to Hold Today 

However, the reason for its declines could be tied to the latest report from the investment advisor and former Prudent Bear Fund Manager David Tice suggesting that the “Bitcoin Is Very Dangerous to Hold” today. As per the latest report, the Investment advisor has warned about investing in bitcoin. 

After indicating “negative statements” by central bankers and regulators, such as the Bank of England, he said it is “very dangerous to hold” bitcoin today. These judgments seem to left a meaningful negative impact on the BTC price.

Stronger Dollar Pushes Bitcoin Below $30,000 Level

The downticks in the BTC/USD coin pair were further bolstered after the U.S. dollar climbed to a more than 3-month high against a basket of major currencies. 

The greenback hit its highest level against significant peers in over 3-months as the mounting wave of Covid-19 cases globally raised doubt over the sustainability of the global recovery. Thus, the upticks in the U.S. dollar were seen as one of the key factors that kept the BTC prices under pressure. 

BTC/USD Price Forecast

BTC/USD 4-Hour Chart

Bitcoin Price Forecast – Technical Outlook: BTC aims for $28,650

Bitcoin price forecast is strongly bearish as it has violated the double bottom support at the $30,990 level. On the 4-hour chart, the leading crypto pair BTC/USD has violated a descending triangle pattern. The double bottom pattern of this triangle was supporting Bitcoin at 30,990 levels. However, the same area will be extending resistance now. 

As you can see on the chart, Bitcoin has closed a bearish engulfing candle below 30,994 level. This bearish engulfing candle can lead Bitcoin price further lower towards the next support level of 28,650 level. 

The leading and lagging indicators such as Stochastic and 50 periods EMA (exponential moving average – red line) support a selling trend. Stochastics holds at 7, demonstrating that the BTC has entered the oversold zone. While the 50 EMA (exponential moving average – red line) will be working as a hurdle at 30,850.  

Technically, the oversold Bitcoin may show a slight bullish correction until the 30,052 level. Closing of a couple of candles below 30,052 level can trigger sharp selling until 28,650 level. 

The BTC/USD price forecast remains bearish today. Therefore, the forex trading participants may look for placing a sell limit at 30,052 to target 29,250 and 28,650. All the best. 

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