Bitcoin (BTC/USD) could be following a deep correction

The bears finally took the reins of the Bitcoin movements and we see that in the short term there is a dynamic support offered by the 200-hour moving average. The resistance of 11339 has remained solid and has helped the BTC/USD pair to remain under downward pressure, so we may see a deeper downward correction.

The Parabolic SAR is suggesting that the downward trend could last for a few more days, as the bullish price action weakens when touching the key level of 11339. The 200-hour moving average is limiting losses, although it is likely to be fractured for thus allowing more falls in the coming days.

What do we expect?

According to our forecasts in the H1 chart, cryptocurrency aims to gain momentum at more bearish levels. Therefore, our projections put Bitcoin at the Fibonacci level of 38.2% in 9407 at least, so that we observe a buying reaction that allows a rebound towards the Fibonacci target of -23.6% in 12985. The RSI remains in negative territory.

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Felipe Erazo