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Cryptocurrencies
BTC/USD: Drop Below $27,000?
Since connecting with weekly resistance at $30,664 in April, upside momentum slowed considerably for the major cryptocurrency and moderately corrected to just ahead of weekly support at $25,381. Technically, weekly price is in the early stages of an uptrend; thus, dropping in on the aforesaid support is not out of the question.
Out of the daily timeframe, price responded to the AB=CD support structure at $25,984 in May (denoted by a 100% projection and a 1.272% Fibonacci extension from $26,095). This was noted structure in previous analysis and has since seen the unit test the underside of the 38.2% Fibonacci retracement ratio at $27,810 (derived from legs A-D) and the 50-day simple moving average at $27,909. The test of the aforementioned structure would have seen some AB=CD longs likely reduce risk to breakeven and liquidate partial profits.
Ultimately, this, in addition to the daily timeframe showing early signs of a downtrend, could imply a downside push beyond $25,984 to test the mettle of weekly support mentioned above at $25,381. Should buyers change gears, however, this may see price zero in on the 61.8% Fibonacci retracement ratio (also derived from legs A-D) as the final profit objective at $29,037 (common for AB=CD traders to target both 38.2% and 61.8% Fibonacci retracement ratios).
Shorter term, resistance is active at $27,287 following a break of trendline resistance from the high of $28,473. To the downside, $27,000 calls for attention as a possible support structure which merges with the above-noted trendline, marked as a possible support. South of here, attention shifts to support at $26,658, while venturing above $27,287 this week opens the door to H1 resistance at $27,560.
In light of the current analysis, weekly support at $25,381 will likely remain a key watch for many going forward, particularly as the AB=CD pattern on the daily chart saw the price rebound and reach the initial take-profit target. That, along with the daily chart depicting an early downtrend, could see H1 drop below $27,000, targeting support from $26,658.
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