Bitcoin is likely to usher in the weekend session with massive declines. The past 48 hours have been trying to the bulls as they worked extraordinarily hard to keep BTC above $18,000. Precisely, the seller congestion at $18,500 became an uphill battle, which explains the ongoing correction.
At the time of writing, the flagship cryptocurrency is trading beneath $18,000 as overhead pressure intensifies. The bulls seem to be treading on shaky ground, or perhaps at the edge of a high cliff.
The descending parallel channel discussed on Thursday is still intact but the lower boundary is currently under duress. If broken, BTC/USD will be forced to seek refuge at the 200 Simple Moving Average on the 4-hour chart.
If push comes to shove and declines fall under the crucial moving average, we can anticipate a massive breakdown heading to $16,500 (late November support). Currently, the least resistance path is to the south, mainly supported by the Relative Strength Index.
On the upside, Bitcoin’s movement is limited by the channel’s middle boundary in conjunction with the 100 SMA. Consequently, closing the day under $18,000 would an enormous bearish signal, strong enough to trigger massive sell orders.
BTC/USD 4-hour chart
It is essential to have it in mind that the bearish outlook will fail to materialize if Bitcoin holds the anchors at the 200 SMA and the lower boundary of the channel. On the upside, ending the day above $18,000 will stress to the buyers that Bitcoin still has the momentum to hit higher levels beyond $19,000.
Bitcoin intraday levels
Spot rate: $17,945
Relative change: -321
Percentage change: -1.7%
Trend: Bearish
Volatility: High
