Bitcoin opened with a downside gap last Monday, breaking below the upside support line drawn from the low of July 20. The crypto had its ups and downs during the week, and yesterday, it fell near the $45,040 barrier, marked by the inside swing highs of Sept. 23 and 24.
In our view, the near-term outlook remains negative, but we would like to see a decent break below $45,040 before we start examining further declines. Such a break may initially encourage declines towards the $40,740 or the $39,400 zones, marked by the lows of Sept. 29 and 21, respectively.
However, if neither barrier holds, then the bears could dive towards the $34,440 zone, marked by the low of July 26. We will start examining the bullish case again if we see a strong recovery back above $59,340, which provided resistance between Nov. 21 and 30.
Bitcoin will be well above the aforementioned upside, and the bulls may decide to push towards the $62,615 territories, the break of which could allow extensions towards the $66,100 barrier, marked by the high of Nov. 15. If they don’t stop there either, a break higher could pave the way towards the record peak of $68,920 or even the round number of $70,000.
