Bitcoin languishes at over two-week lows as the technical struggle continues
Bitcoin down near 2% to $31,900 currently
It has been all about the technical story in Bitcoin since late May and we are still continuing down that path right now, as the struggle plays out.
The near 2% drop today sees Bitcoin fall to its lowest level since 27 June in a push back under $32,000 - which has been a sort of pivotal level in itself on the daily chart.
But in essence, any upside momentum is capped closer to $40,000 while downside pressure needs to break below the psychological level of $30,000 to extend any breakout.
That said, the mini-series of lower highs, lower lows in the past two weeks has not been encouraging and we are now seeing a "death cross" pattern with the 100-day moving average (red line) falling past the 200-day moving average (blue line).
The latter reveals the shift in momentum in Bitcoin and it is one that may be hard to ignore, especially if this pushes the agenda towards a firmer test of $30,000.
A break there could exacerbate a quick fall back towards $20,000 potentially next.
As much as the news may still offer some short-term volatility, the chart and the technicals are the biggest element at play now for Bitcoin in my view.