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BTC/USD: Technical Outlook, Edition #14 (06/06/21)

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Bitcoin is coiling under considerable pressure with multiple ‘fakeouts’ (False Breakouts) above and below pennant support and resistance, sucking in liquidity to then later trap one-sided participants.

Twice now, as BTC/USD was gearing for a break to the upside, FUD (Fear, Uncertainty, and Doubt) has leaked. Timing is hardly a coincidence to a technical trader when the FUD cannon is loaded and fired around key price zones.

The BTC/USD H4 chart below illustrates how price action behaved and reversed right at the point of both upside breakout attempts.

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Moving forward, Bulls need to hold the significant 0.5 Fibonacci retracement level located around USD 34K. A daily close below the 0.5 may see the price of Bitcoin fall further, down to local support at the USD 30K order block pictured below.

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See you again for the next update.

- q


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