Crypto Industry News:
The three largest stock market indices in the US fell by 3% yesterday. At the same time, Bitcoin failed to break the $25,000 barrier again, and the subsequent rejection brought it back below $24,000.
Most altcoins suffered even more, with MATIC, OKB, SOL and a few others down around 7%.
The last few days, more precisely since the end of last week, have been characterized by high volatility for the main cryptocurrency. On Thursday, it surged to $25,000 and topped the high for a six-month high before dropping just as quickly to below $23,500.
The next two attempts to cross $25,000 occurred in the last few days, and the last one was yesterday. BTC hit $25,200 for a while, but the asset failed once again. The subsequent rejection sent the value down, with Bitcoin trading below $24,000 today.
This leap came during the Wall Street Crash. All three major US stock indexes closed in the red. The S&P 500 and Dow Jones were down 2% on the day, while the Nasdaq Composite was down over 3%.
The recent drop in the price of BTC has lowered the asset's market capitalization to $465 billion. Its lead over altcoins increased slightly to 42.6%.
Technical Market Outlook:
The BTC/USD pair had made a new local high at the level of $25,257 and after a short period of consolidation reversed sharply lower to make a local pull-back. A sustained breakout above the level of $25,000 on BTC/USD is still needed in order to extend the rally towards the key mid-term technical resistance seen at $25,442, so there is still a room to the upside for bulls. However, the bears had manage to break below the short-term trend line, but then bounced again from the 38% Fibonacci retracement of the last wave up located at $23,800. In a case of a breakout below this retracement level, the next target for the corrective cycle are $23,346 (50% retracement) and $22,868 (61% retracement), but for now the bulls are testing the broken trend-line from below. The weak and negative momentum on H4 time frame chart supports the short-term bearish outlook for BTC.
Weekly Pivot Points:
WR3 - $25,667
WR2 - $24,967
WR1 - $24,709
Weekly Pivot - $24,259
WS1 - $24,000
WS2 - $23,550
WS3 - $22,841
Trading Outlook:
Despite the recent rally, the down trend on the H4, Daily and Weekly time frames continues without any indication of a possible trend termination or reversal. So far every bounce and attempt to rally is being used to sell Bitcoin for a better price by the market participants, so the bearish pressure is still high. The gamechanging level for bulls is located at $25,442 and it must be clearly violated for a valid breakout in the longer term.