The price of Bitcoin managed to recover some of its substantial losses that were incurred last week, though the prevailing bearish pressure is still far from being exhausted.
The pullback is currently drawing near the next Fibonacci threshold, though once it reaches it, the broader downtrend would likely continue to head lower. That is why the underlying setup can be utilised by bears looking to implement trend continuation trading strategies at the peak of the pullback.
Higher-risk assets, including most cryptocurrencies, are likely to continue depreciating in the near future as market uncertainty continues to appreciate. This is owing to the persisting pandemic fallout.
Earlier today, it was revealed that China's trade surplus contracted for the first time since March, elucidating waning global demand. Meanwhile, the economic sentiment in the Eurozone remains subdued, confirming the tentative nature of the global recovery effort.
Given Bitcoin's textbook pullback within the newly emerging downtrend and this market environment dominated by uncertainty, bears' ultimate course of action would be to wait for the completion of the pullback before they enter short.
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