Bitcoin Pulls Back to Bearish Order Block

The BTCUSD market is currently bearish on the daily chart. This downward trend was established with the formation of a double top pattern at $71,500.0 in June. Following the formation of the double top, a retest of its neckline provided shorting opportunities.

The test of the demand level at $60,760.0 paused the price decline on the daily chart. The downward delivery of price to this demand level is characterized by the presence of a fair value gap positioned below a bearish order block formed on June 24th. The price is currently pulling back to this bearish order block as it fills the fair value gap on the daily chart.

BTCUSD Key Levels

Demand Levels: $60,758.0, $56,932.0, $50,581.0
Supply Levels: $67,250.0, $71,500.0, $73,680.0

What Are the Indicators Saying?

The switch of the Smoothed Heikin Ashi Candles hue to red in June revealed a market reversal. The price is pulling back to retest the Smoothed Heikin Ashi Candles at the location of the bearish order block, creating further shorting opportunities. This retest aligns with the current bearish sentiment, providing traders with potential entry points for short positions. Overall, Bitcoin’s price action indicates a bearish trend, with key levels and technical indicators supporting the potential for continued downward movement.

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