Bitcoin turns bearish

With BTC futures no longer bullish on a short-term technical basis (trading below its 50-day moving average) Bitcoin futures are alluding to further erosion. There is a good chance this decline will take pricing below its recent support at the 100-day moving average and test the critical support area of approximately $9,200.

What makes $9,200 a key and critical level that must be held for BTC to hold onto a long-term upward trajectory is the descending top that proved to be unsurmountable resistance for 30 of the 33 months that the futures contract has been offered currently resides in this area. As I just mentioned BTC was able to break out of this falling ceiling just three months ago and no technical level holds as much importance for the future direction of BTC.

If this area is tested it will almost certainly be near the end of this month. That timeline will put the 200-day moving average at precisely the same level. Currently, the 200-day M.A. resides at $9,060. If the above-mentioned scenario plays out the two support levels will intersect at approximately $9,200.

If, however Bitcoin futures can remain above the 100-day M.A. then sideways trading is almost a certainty unless we get a clear and utter breakout that closes well above the 50-day M.A. For now, that is the most likely case to playout for the rest of this week. While next week we will have to watch closely paying attention to the Bearish model that will not relinquish to the bulls if $9,200 does not hold it will turn this short-term correction into a long-term bearish trend.