Bitcoin Price Analysis – Short-Term Selloff, Long-Term Climb?

Avatar newsbtc 2 years ago

Bitcoin Price Key Highlights

  • Bitcoin price previously broke below a short-term rising support level to indicate that a selloff is underway.
  • Price has pulled back from the drop but the Fibonacci retracement levels appear to be holding as resistance.
  • If so, bitcoin price could revisit the swing low or the bottom of the longer-term rising channel.

Bitcoin price has pulled up from its latest dive but the short-term downtrend looks ready to continue until it tests the next major support.

Technical Indicators Signals

The 100 SMA is above the longer-term 200 SMA so there may be some bullish momentum left, but the gap is narrowing to signal a potential downward crossover. If this materializes, bearish pressure could kick in and lead to a drop to the $4150 swing low or lower. The moving averages are also close to the Fibs, so these could add an extra layer of resistance.

Stochastic is heading lower to indicate that sellers are on top of their game and could push for a continuation of the selloff. RSI is also moving south without even hitting overbought conditions, which hints that bears are eager to sustain the drop. A larger pullback, on the other hand, could still find resistance at the top of the channel around $4500.

Market Factors

By the looks of it, bitcoin price is being tossed around by comments from CEOs of major financial firms. This was the case for JPMorgan’s Dimon and Morgan Stanley’s Gorman, and this time the latest are from Goldman Sachs’ Blankfein and UBS Chairman Weber.

In a tweet, Blankfein clarified that he is neither endorsing or rejecting bitcoin but is thinking about it, adding that people were also skeptical about paper money when it replaced gold back in the day. Meanwhile Weber said that his skepticism about bitcoin might be coming from the fact that he was a former central banker.

As for the dollar, the focus is on the non-farm payrolls report as a disappointing read would douse December hike expectations while an upside surprise could mean stronger hawkish expectations.

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