BTCUSD extends weakness below 80K on Binance case shock / risk-off mode

BTCUSD remains firmly in red for the second straight day and extends drop below psychological 80K support, to hit six-week low on Friday.

Several factors contributed to the latest acceleration lower, with multi-billion loss on Binance security breach sending the shockwaves through crypto markets and fresh risk aversion, driven by weakening stocks in tech sector and hawkish Fed’s stance.

Bitcoin is on track for the fourth consecutive weekly loss and ending the month of October in red (after three straight months of gains).

Initial negative signal is developing on monthly chart (bearish engulfing / flat momentum), with weakening weekly studies (break below 10WMA / violation of 55WMA / fading positive momentum), while daily studies turned to predominantly negative mode (strengthening bearish momentum / daily Tenkan/Kijun-sen turned south and remain in bearish configuration).

The price also travels lower through thick daily Ichimoku cloud and comes near its base at 74900 zone (also higher low of Sep 15).

Meanwhile, bears may take a breather after facing headwinds from strong supports provided by 100DMA and Fibo 38.2% of 57673/87385 (76167/76035 zone).

Upticks should be limited and ideally capped under 79200 zone (guarding pivotal 80K barrier) to keep bears intact for fresh push lower and potential attack at 200DMA (73130) and Fibo 50% (72529) in extension.

Res: 79200; 80000; 80373; 81400
Sup: 76312; 76167; 76035; 75000