BTC-USD has continued downward today after posting a high at $583.97 on the BitStamp exchange during Thursday’s trading session. The price action currently stands at $578.99, up just over 1 percent on today’s open. The effects of the Bitfinex hack will linger on and has so far contributed to bearish sentiment on BTC-USD. It looks as if after a strong bull market in the months of May and June, BTC-USD is starting to reverse in favour of bears.
The chart below illustrates the long-term outlook with the daily price action for BTC-USD. In the aftermath of the Bitfinex hack, BTC-USD posted a fresh low at $465.28 but has since recovered above $560. However, after struggling to break resistance at $580, BTC-USD has continued downwards.
The chart below highlights that the lagging line (purple) has moved from above to below the Ichimoku cloud, confirming that a long-term downtrend is in play. Moreover, strong bearish momentum is indicated by the Awesome Oscillator which is negative and trending downward. The price action is currently wedged between the conversion (blue) and base (red) line which will provide support and resistance respectively.
Therefore, we should look to buy BTC-USD if