Bitcoin continues to slide and is currently testing the $46,000 level. For Bitcoin bulls, the start of this holiday week isn’t looking so merry.
The U.S. stock market opened this morning deep in the red and this risk-off sentiment is taking bitcoin down with it. ↘️
Over the weekend, we had a bunch of negative news such as:
- Democratic Senator Joe Manchin pulling his support for President Biden’s $1.75 trillion “Build Back Better” plan.
- Dr. Fauci warning that the extraordinarily contagious Omicron variant of the coronavirus is raging worldwide and would likely strain hospitals and cause another major surge in the United States.
- Netherlands reimposing a strict lockdown and UK saying that it won’t rule out new measures over Omicron.
Looking at Bitcoin’s Heat Map on MarketMilk™, it ain’t looking pretty for the bulls.
Looking the charts, it’s hard to be too optimisitic right now.
On the weekly chart, price managed to close below its 50 SMA (purple line).
While BTC is still technically in an uptrend with price still showing higher lows, this breakdown below the 50 SMA is something to watch. 👁️
We’ll see this week if price can recover back above this moving average, so whether it will act as a dynamic resistance area.
On the daily chart, price closed below its 200 SMA (blue line) a couple days ago and remains below it. 😭
If the $45,000 level (dotted white line) can’t hold here as support, look for price to fall back down to previous support area of $40,000 back in late September.
Overall, price action looks bearish. 🐻
In order for this to change, I would need price to close back above its 200 SMA and the $50,000 level.Unless we can get some positive news to switch overall market risk sentiment back to risk-on, then bitcon (BTC/USD) looks like it will either chop around its 200 SMA or will continue to fall.
With Omicron doom-and-gloom news as the dominant narrative right now, the oods for a Santa Clause rally for bitcoin and the overall crypto market is looking slim. 😟
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