The market is going to test the closest support at 1.4069 - 1.4027. If a pullback from these area happens little later on...
Bitcoin (BTC/USD) looking to make another leg lower
Bitcoin had a bearish week and is consolidating the price action below the 200-hour moving average. At the moment, we are observing a perforation of the Fibonacci level of 38.2% in 9407, which would allow losses to the level of 50% in 8724, where the bulls could gain traction.
In the latest news about the Crypto world, the Bank of America gave some statements where it considers cryptocurrency as a "risk" when doing business. On the European side, Austria would be planning a new regulatory framework covering cryptocurrencies and ICOS, in a move similar to the regulation of Gold and commodities trading.
In the United States, more exactly in the state of Georgia, comes the news that taxpayers will be allowed to pay their taxes in Bitcoin, thus becoming the last state in the USA to allow this measure. In addition, it is necessary to remember that Venezuelan cryptocurrency Petro is already in pre-sale mode.
What do we expect?
According to our forecasts in the short term, the BTC/USD pair aims to make a bearish extension towards the Fibonacci level of 50%, where we could see a buying concentration that allows Bitcoin to resume the upward trend towards the target of - 23.6% in 12985. However, if the BTC breaks below the 8724 level, the fall would extend to 65% in 7856.
We've got a bearish "High Wave", which has strong confirmation. In this case, the price is likely going to decline.
Growing concerns over Greek bailout, early elections in Italy and comments by the ECB President Mario Draghi about the need to maintain the bank’s extraordinary amount of monetary policy support…
The 144 Moving Average has acted as support, but there's a bearish "Engulfing' at the local high.