According to the price analysis by Peter Smith, a financial analyst at DagX crypto trading platform, Bitcoin (BTC) has been trading below the 50-day SMA for the past two days. This is a negative sign and it shows that there is no urgency among the bulls to buy even at these levels. The 20-day EMA has started to turn down and the relative strength index (RSI) has dipped into negative territory, which suggests that bears have the upper hand.
A decisive breakdown below the 61.8% Fibonacci retracement level of $8,467.54 is likely to attract further selling that can drag the price to $7,952.84.
Conversely, if the BTC/USD pair bounces off the current levels and breaks out of the downtrend line, it will signal that the current fall was a bear trap. Smith from dagx.live anticipates the pair to start a new uptrend above the downtrend line. Therefore, we will wait for the price to breakout and close above the downtrend line before turning positive.