Bitcoin hangs in the balance

Bitcoin futures look increasingly uncertain for the bulls as the price continues to fall below the 20,000 level and recently found another battleground at the price level around 16,000.

Yesterday, the crypto contract drifted slightly lower beyond what looked like a potential Bear Pennant pattern ie. a period of triangular consolidation after a major decline that is often a precursor to another decline.

Meanwhile, momentum remains tilted to the downside according to the relative strength index, while the directional trend to the downside is strengthening as indicated by the average directional index.

Some potential resistance can be found near the 21-day exponential moving average, which is trading near 17,700. On the other hand, watch the yearly lows at 14,925 to see if /BTC can hold.

It is also difficult to assess potential areas of support as the price has not traded near current levels since 2020 – not to mention that the overall situation for crypto has changed dramatically since then. But the annual linear regression line (line of best fit based on closing prices) suggests that the “fair value” for Bitcoin futures is near 13,450, which is roughly -16% down.

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