Bitcoin Might Retest Trend Line Resistance One Last Time

Bitcoin is ready to test the previously tested trend line resistance one last time before the downtrend begins. This happened the last time as well when BTC/USD ended up testing the top of the symmetrical triangle for the fourth time before it crashed below it. This time it appears to be doing the same as the price action is a lot similar to that of the fractal from March.

The S&P 500 (SPX) also seems ready to climb back into the already broken symmetrical triangle one last time before the downtrend continues. However, the long-term outlook remains bearish. It has become very clear at this point that it is only a matter of time before we see a big move to the downside in both cryptocurrencies and stocks. The ultimate target for this year for BTC/USD would be a decline towards $3k. I expect it to decline slightly lower than that before it begins another uptrend.

For a long time, investors and traders have gotten used to prolonged bull markets. Many are still in denial and refuse to recognize the gravity of the situation. However, we can now see that the second wave of Covid 19 is striking big metropolitans and cases are spiking again. Meanwhile, the EUR/USD forex pair has failed to flip bullish since July, 2019 while the US Dollar continues to strengthen. All of these developments point to one conclusion and that is an imminent decline in the cryptocurrency market in the weeks ahead, but for now we need for a retest of the trend line resistance one last time.