BTC/USD: Technical Outlook, Edition #14 (06/06/21)
After tapping key levels, China FUD sends Bitcoin down again... Find out the analysis and see through the False Breakouts in today's edition
Bitcoin is coiling under considerable pressure with multiple ‘fakeouts’ (False Breakouts) above and below pennant support and resistance, sucking in liquidity to then later trap one-sided participants.
Twice now, as BTC/USD was gearing for a break to the upside, FUD (Fear, Uncertainty, and Doubt) has leaked. Timing is hardly a coincidence to a technical trader when the FUD cannon is loaded and fired around key price zones.
The BTC/USD H4 chart below illustrates how price action behaved and reversed right at the point of both upside breakout attempts.
Moving forward, Bulls need to hold the significant 0.5 Fibonacci retracement level located around USD 34K. A daily close below the 0.5 level may see the price of Bitcoin fall further, down to local support at the USD 30K order block pictured below.
See you again for the next update.
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