For the fifth time in a row, Bitcoin has been unable to get past the $87,000 resistance and is currently trading below $83,000. In their latest episode, Coin Bureau points to this as an indication of waning bullish momentum and a potential slide toward $76,000 support.
Repeated Rejection at $87,000 Signals Weakness
The analysis from Coin Bureau shows that after five consecutive attempts to break above $87,000, the asset has been repeatedly rejected at this key resistance level. Such rejections are a sign that bearish sentiment is taking hold in the market. With no daily close above $87,000, selling pressure has increased and driven the price down. Overall, these failed breakouts leave the door open for further downside risk.
Technical Breakdown and Support Levels
Bitcoin has slipped below $83,000 and in the process has broken a trendline that had been intact since August 17. The fact that it has also fallen through the $82,800 support zone is further evidence of this technical breakdown. According to the host at Coin Bureau, the asset is now trading below its 50-day moving average, which is a bearish indicator suggesting a medium-term softening in price. The analyst puts it plainly: should Bitcoin not be able to reclaim $83,000 soon, the way will be open for lower support levels.
Potential Move to $76,000 as Liquidity Concentrates
According to Coin Bureau, $76,000 is the level to watch as the next zone of liquidity and a point of support for Bitcoin. The analyst puts the recent breakdown in context by restating an earlier caution: should the bulls fail to reassert themselves, a slide to $76,000 is more likely than not. There is plenty of price action to support that assessment, from trading below the 50-day moving average to the loss of the August trendline. In the view of Coin Bureau, this makes $76,000 the level where traders should focus, as it could well be the next battleground for the asset.
This article reflects the channel author’s opinion and is not investment advice.
Every call by Coin Bureau and how it played out — in the BuyCrypt bloggers tracker.
Source — Coin Bureau: https://www.youtube.com/watch?v=x7I0FuWhYJo
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