Bitcoin market finally exited the indecision status quo as bears took over amid the Asian session on Tuesday. The largest cryptocurrency had balanced around $36,000 in the wake of last week’s freefall from $39,000.
Its upside had been limited under a confluence resistance formed by the 50 Simple Moving Average (SMA) and the 100 SMA on the four-hour chart. As hope for recovery dwindled, sellers took advantage, pushing for declines.
At the time of writing, the flagship cryptocurrency barely holds above $32,000. The technical outlook is highly bearish based on the short-term technical picture.
Bitcoin’s bearish cycle could be here
According to NebraskanGooner, a renowned cryptocurrency analyst, Bitcoin “is currently in a bear cycle.” The initial drop from the record high of around $65,000 was nerve-shattering. Bitcoin took a pit stop of approximately $30,000, and recovery ensued. However, little progress has been made above $40,000, with Bitcoin remaining under this level most of the time.
The four-hour hour chart highlights the formation of a symmetrical triangle pattern, discussed on Monday. The bullish prediction of a breakout to $50,000 shut the door on us as a breakdown took precedence. If support at $32,000 fails to hold, the 35% drop from the triangle will likely materialize, sending Bitcoin to $23,000.
Other technical levels adding credence to the bearish outlook are the Moving Average Convergence Divergence (MACD) indicator and the Relative Strength Index (RSI) on the four-hour chart. Both the indicators have vivid bearish signals that may continue calling more sellers into the market.
BTC/USD four-hour chart
BTC/USD price chart by Tradingview
NebraskanGooner believes that the next bull cycle would be “bigger than ever despite the ongoing selloff.” Therefore, investors have “to get through the bad to enjoy the good.”
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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