Thursday's Market Minute: Bitcoin Buckling Below Support

Bitcoin futures are in a potentially difficult situation for bulls lately, as the /BTC contract has fallen below an area many technicians likely have been keeping an eye on; the opening after the gap that began in June near 27,355 and that prompted a 20% one-session plunge.

/BTC battled its way back above this level and even cleared the 30,000 mark again, but was never able to take out those pre-gap highs. Overall, one could argue that /BTC is still in an uptrend that began near the beginning of 2023, but it has been failing to make higher highs since peaking out around 31,200 in mid-April and now is forming a more triangular pattern when factoring in the downward move off those highs.

Now, the contract has been slipping below that key opening gap level near 27,355 during the past week, although it did find support near the 252-day Exponential moving average near the 25,840 level. The moving averages themselves reflect this weakening trend environment for bitcoin. The slope of the shorter-term 21-EMA has started to trend downward which could signify the early beginnings of a broader trend change from up to down, while two longer-term moving averages (63-EMA and 252-EMA) are starting to flatten as well. 

Watch the two longer-term moving averages near 26,685 and 25,928 for support. If those break, the area near 24,600 represents some old highs that could be supportive. Resistance could be found near the 21-EMA around 27,858, and beyond that at the beginning of the big aforementioned gap near 29,000.

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