₿itcoin veering bearish

BTC futures are leaning on their support line as of 4:45 ET, trading at $6,765 down $185 on the day. As we have been speaking about all this week BTC futures are approaching the apex of a long forming compression triangle as we speak BTC is scraping against the bottom trend line and appears almost certain that the break will be to the downside for a few reasons.

First and foremost the 21-day exponential M.A. currently at $6975 has proven to be insurmountable so far. After dropping below this key indicator for short term trend on Monday it was shunned at this level on Tuesday when BTC traded right to this indicator in intra-day trading but proved to be resistance once again. This is eerily similar to March 6th when BTC was last rejected right at this level and the following session was trading over $1000 lower on its way to this year’s lows.

And speaking on moving averages of coarse all the major ones (50,100,200-day) being way above current pricing is a fundamentally bearish sign. Although these are lagging indicators consider this. In the last two years BTC has never fallen below any of these averages to recover and break back above at the same price point were prices crossed below in the first place.

We also have a potential death cross forming between the 50 and 100-day moving averages. That being said if the break takes us lower but pricing still holds above $6,500 and lacks in volume we may avoid a further breakdown.