BTCUSD (Bitcoin) has been experiencing a sharp decline in the short-term after its long-lasting sideways pattern broke to the downside, generating a fresh 18-month low of 20,050. Moreover, the descending 50- and 200-day simple moving averages (SMAs) are endorsing the cryptocurrency’s bearish technical picture.
The short-term oscillators indicate a negative near-term bias. Specifically, the MACD histogram is beneath both zero and its red signal line, while the RSI has entered into its oversold area.
Should selling pressure persist, the price could descend to challenge its 2022 low of 20,050, which is also an 18-month low. Violating this zone, the 17,930 level, which is the 200% Fibonacci extension of the 32,950-47,971 upleg, could prove a tough obstacle for the bears to overcome. Failing to halt there, the November 2020 support region of $16,200 may act as the next floor for the price.
Alternatively, if buyers re-emerge and regain the upper hand, the price might encounter initial resistance at the 161.8% Fibo of 23,668. Conquering this barricade, the bulls might aim for the 32,950 hurdle before the attention shifts to the 61.8% fibo of 38,688. Any further upside moves could then stall at the 50% Fibo of 40,460.
Overall, BTCUSD’s outlook remains bearish as broader near-term risks are tilted to the downside. Therefore, a break below the 20,050 could trigger fresh selling interest, sending the price to form fresh multi-year lows.
