Bitcoin [BTC] 100 SMA is safely below the longer-term 200 SMA on the 1-hour time frame, indicating that the path of least resistance is to the downside. This however signifies that this sell-off is more likely to resume than to reverse. The gap in-between this 2 moving avg. is also getting wider to reflect strengthening selling momentum.
The 100 SMA also coincides with the 50 percent Fibonacci retracement level at $6,520 USD to add to its strength as a ceiling. This coincides with a former support zone, which might now hold as resistance since it’s close to the top of the channel. A larger correction could test the 61.8 percent Fib closer to $6,500 USD mark and still within the channel top and area of interest.
Stochastic is still heading north and has some room to go before hitting the overbought zone, which suggests that buyers could stay in the game for a bit longer and keep the correction going. Price is currently testing the 38.2 percent Fib at the mid-channel area of interest, which likely contains some sell orders, too. RSI is also heading higher so Bitcoin [BTC] Price might follow suit while buyers are in control.
Traders appear to be liquidating some of their bitcoin positions while still waiting for more catalysts to sustain earlier rallies. There is a lot to look forward to for the industry, but it appears that investors are hoping to get more confirmation and momentum before loading up their long plays.
- Bitcoin [BTC] price continues to trade inside its decreasing channel on the 1 hr time frame.
- The price looks ready for a pullback to the resistance and the Fib retracement tool shows where sellers might be waiting.
- Technical indicators also seem to be suggesting that the downtrend might resume at some point.