Bitcoin Price Key Highlights
- Bitcoin price is still pulling back to the broken area of interest after it fell below the ascending channel support.
- The impulse wave looks ready to resume as a spinning top can be seen right at the broken support.
- Technical indicators are also confirming that the selloff is ready to resume.
Bitcoin price has completed its correction to the support-turned-resistance area and is now ready to slide back to the previous lows.
Technical Indicators Signals
The 100 SMA is crossing below the 200 SMA and completing this downward crossover could draw more sellers to the mix. In addition, the moving averages are holding as dynamic resistance since they line up with the broken support around $1100.
A spinning top candlestick has formed right at this area of interest, indicating hesitation among buyers. If this resistance holds, bitcoin price could complete the formation of a head and shoulders pattern with the neckline around $950. A break below this long-term support could open the door for longer-term losses.
Stochastic is indicating overbought conditions and is starting to turn lower to show a pickup in bearish pressure. RSI is also pointing down from the overbought zone to confirm that buyers are exhausted and are letting sellers take over.
Dollar demand could win over bitcoin price at some point, as the former is supported by the prospect of more Fed interest rate hikes and fiscal stimulus. So far, though, very little detail has been provided by the Trump administration in this regard. Strong economic reports and a rebound in equities could shore up dollar gains sooner or later, pending any announcements from the US President regarding infrastructure spending or tax reform.
Meanwhile, bitcoin price is still reeling from hard fork debates as investors are liquidating some of their holdings to reduce exposure to any eventualities. Some worry that a new version of the software could gain sufficient control of the network and render older versions incompatible. Updates on this scaling issues could continue to weigh on bitcoin action moving forward.
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