Bitcoin just crashed below a key support and is struggling to hold its ground lest it plunges further. The bulls are losing hope and the bears are preparing to take on the reins. If BTC/USD were to decline below the 200-moving average on the 4H time frame, the bears would be eager to fight for control. So far, the tug of war continues and we don’t have a clear winner because the bulls can still save the price from falling further.
The near-term support for Bitcoin could be the 23.6% fib level where it could see a reversal. This would also pave the way for a retest of the previously broken trend line support turned resistance around $9.5k. Even though it appears to be a long shot at this time, it is still possible. On the other hand, if the bulls fail to save the price from declining below the $8k and it ends up breaking below the ascending channel, we would be looking at the beginning of a very devastating downtrend.
For now, the big picture remains unchanged. The S&P 500 (SPX) is on the verge of a major decline having run into the 200-moving average and faced a rejection on the 4H time frame. Meanwhile, Bitcoin dominance (BTC.D) eyes further upside. Ethereum is also waiting for a major decision against Bitcoin. We can see on the ETH/BTC chart that this would be one of the most important moves in ETH/BTC since 2017. If the price of Gold (XAU/USD) continues to decline and fails to find support at $1,706, we can expect the downtrend in the cryptocurrency market to accelerate.
