Bitcoin Price Key Highlights
- Bitcoin price seems to be drawing support around the area of interest at the middle of its range.
- Price previously broke below a short-term consolidation pattern to show that sellers have regained control.
- There are still several nearby support zones that might pave the way for a bounce back to the highs.
Bitcoin price is stalling close to the mid-range area of interest, which happens to be bounded by a couple of Fib levels.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA so the path of least resistance is still to the downside. In other words, the selloff is more likely to continue than to reverse. However, the moving averages are also close to the 50% Fib and appear to be holding as dynamic inflection points at the moment.
Stochastic is heading up to show that buyers are regaining the upper hand. If so, bitcoin price could head back to the swing high near $2950 or even create new highs. However, stochastic is turning lower to signal that there’s some bearish pressure left for a deeper correction.
The 61.8% Fib is much closer to the former support and resistance area. A break below this level could leave room for a drop to the range support at $1850.
Market Factors
Bitcoin price lost its support from the previous week’s BIP 91 catalyst as other rival factions of the cryptocurrency are still pushing for their own versions. A lot could happen until the August 1 SegWit activation and the lack of consensus support could keep hard fork concerns in play.
However, the dollar is also on a weak footing as the FOMC didn’t seem eager to start the balance sheet run off or push for a rate hike in September. Instead, they toned down their inflation assessment and simply mentioned that the runoff would start “relatively soon.”
There’s not much in the way of top-tier US data other than the durable goods orders report but another weak read could further douse September tightening forecasts and push the dollar lower against Bitcoin price.
