EUR/JPY broke key support level 131…
Bitcoin (BTC/USD) could extend the corrective bias in the short-term
The main news in the last days around the cryptocurrencies has been the massive take-profiting action of the Bitcoin after having found resistance around the important psychological level of 19,000. The price has lost about 20% and although it has managed to have a recovery, it seems that the bears want to retake the reins of the pair in the short term.
At the fundamental level, we have observed that more hedge funds have been betting on the BTC and countries are increasingly resigned to accept companies that trade with cryptocurrency. An example of this is Belarus, whose country has taken measures of tax cuts for those companies that are in the cryptocurrency’s trading.
Technically, the BTC/USD has broken a bullish trend line, although it tries to stay above the 200-hour moving average, although the Parabolic SAR still does not show that the bulls have resumed the pair's trend. The price remains below the 50-hour moving average, which could serve as a dynamic resistance.
What do we expect?
Due to the nature of the sustained decline from the psychological mark of the 19,000, we could be ahead of a doubling of a cycle started from that fall to the lows of last week. This is reinforced by the idea that Bitcoin has fractured an uptrend line. If it breaks below the 200-hour moving average, we could see a break in the support level at 11,588 and then go to the Fibonacci extension of 100% at 5,754. On the upside, if the BTC bounces above the 200-hour moving average, the next target would be the 19,000 milestone.
There isn't any reversal pattern so far. If the 21 MA acts as resistance, we're likely going to have just another decline...
Expanding bullish Ichimoku Cloud with rising Senkou Span A; a cancelled golden cross of Tenkan-sen and Kijun-sen; the prices are returned to the support of Tenkan and Kijun and may go higher.
Narrow bearish Ichimoku Cloud with horizontal Senkou Span A and B; a golden cross of Tenkan-sen and Kijun-sen, but the lines are horizontal; the Bulls can’t breaking out the resistance of upper border of the Cloud and the market may return to 113.00.