Bitcoin is trading near $81,000, down nearly $3,000, after reaching a low of $80,836, according to Greg Michalowski at investinglive.com. The session high reached $84,294, below yesterday’s high of $84,774. Both highs stalled ahead of the next key upside swing level at $85,578, and sellers have taken back control after buyers failed to reach that hurdle.
The move lower has been helped by risk-off sentiment across the equity markets, with the Nasdaq Composite down 2.56% and the Nasdaq 100 down 2.82%. Bitcoin is following the equity market’s lead, at least today, and can get caught in the same selling flow when investors are reducing risk.
Technically, the decline has taken the price into a lower swing area between $80,100 and $81,183, which has helped define the bottom of bitcoin’s consolidation range since September 18. Monday’s low at $80,595 also stalled within that zone. Buyers need to defend support and push the price back above $81,183 to begin easing the immediate downside pressure, while sellers need a sustained break below the lower boundary, with $80,000 described as the line in the sand, to open the door for more downside momentum.
Below the consolidation range, the 38.2% retracement of the move higher from the July low comes in at $76,052, which becomes the next major technical target if sellers can establish control below $80,000. Michalowski notes that testing support is one thing, while breaking below it and staying below it is another.