Bitcoin Threatening Another Leg Lower

The recent sell off in Bitcoin from the 52930 highs is attracting a lot of attention; is this merely a correction within another bull phase, or will the current peak mark a lower high against the all time highs, paving the way for a deeper reversal lower. We can’t know for certain but can only trade the setups as they present themselves.

With this in mind, the current price looks vulnerable to a deeper push lower with a break of 43895 opening the way for a test of the 41225 level next. The last few peaks before the reversal lower in Bitcoin saw plenty of bearish divergence and with indicators both turned lower here, there is room for a continued push to the downside with 41225 marking the same depth of correction as the move from June highs to June lows.

Key Data to Watch

With Bitcoin there is obviously the risk that any breaking news can create volatility out of nowhere ( e.g tweets from Elon Musk, regulatory crackdowns in China, exchange outages etc), so it is advisable to always have a solid news wire to stay up to date. US data this week will also be important (any large upside moves in USD might send BTC lower).