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Moving to the hourly chart, BTC is dropping decisively below a key support during the Asian session already and it is now threatening to retest the $80,000.
This opens up an interesting opportunity for short-sellers as this trade offers a risk-reward ratio of nearly 2:1 if the stop price is set below BTC’s most recent support at $82,000 and the target is set at $80,000.
The American session will likely determine if this is a bear trap or if the downtrend that started yesterday could accelerate until BTC retests this key psychological threshold.
Market sentiment and ETF outflows favor a bearish outlook for the token while both the weekly and daily charts are on a downtrend, meaning that sell-offs would produce faster and higher returns compared to recoveries.
Momentum indicators in the hourly chart are also in negative territory as the Relative Strength Index (RSI) is nearing oversold territory and stands 30% below the signal line.
Meanwhile, the MACD’s histogram shows steadily rising negative momentum readings just an hour away from the American session.
Total liquidations of Bitcoin long positions in the past 12 hours currently stand at $102 million and already account for two-thirds of the total longs flushed out in the past 24 hours. This provides additional evidence that the selling spree is picking up its pace.
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