Bitcoin. The Greenland Crisis Is Dragging Bitcoin Down

[Ben Graham]

The escalation between the EU and Washington over the Greenland topic has driven the cryptocurrency market sharply lower, since the growing uncertainty about where this whole initiative by D. Trump will lead is clearly prompting investors to withdraw from all risk assets, including Bitcoin. Taking this into account, as well as the likelihood that the U.S. president may once again raise this issue at the Davos forum, it should be expected that after a local corrective rebound, the cryptocurrency will come under pressure again.

From a technical standpoint, Bitcoin has every chance of declining after falling below the 88,918.00 level.

Technical Picture and Trading Idea:

The price is below the middle line of the Bollinger Bands, below SMA 5 and SMA 14, which indicate a high probability of further price decline. RSI is in the oversold zone. The Stochastic oscillator has exited the oversold zone to the upside.

A drop below the 88,918.00 level may lead to a decline in Bitcoin toward 86,255.00. A potential selling point could be the 88,727.15 level.

The material has been provided by InstaForex Company - www.instaforex.com