Bitcoin Price Key Highlights
- Bitcoin price looks ready to resume its slide as the descending trend line on the 1-hour time frame is keeping gains in check.
- This lines up with Fibonacci retracement levels that add to its strength as a ceiling.
- A continuation of the selloff could lead to a test or break of the lows near $9,300.
Bitcoin price is struggling to regain ground as it hit a barrier at the inflection points on short-term charts.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside. In other words, the selloff is more likely to continue than to reverse.
The gap between the moving averages is widening to signal a pickup in bearish momentum. The 100 SMA also lines up with the trend line and Fib levels, keeping gains in check. A larger pullback could still hit a ceiling at the 200 SMA dynamic inflection point around $13,000.
Stochastic is pointing down to signal that sellers are on top of their game. RSI has more room to fall, possibly allowing bitcoin price to drop to the swing low or even break lower.
Bitcoin price appears to be unable to shrug off the negative vibes from the crackdown in China and South Korea, with the latest sharp selloff further spooking investors into liquidating.
It might need a strong catalyst to spur a break past the trend line and upside inflection points before bulls jump back in. For now, there seem to be no foreseeable catalysts, unless a test of another major inflection point prompts more buyers to get in a cheaper levels.
It’s worth noting that a couple of geopolitical risks are in play in the financial markets and this could prove positive for cryptocurrencies. First is the looming threat of a US government shutdown and next is the inability for Merkel to strike a coalition in Germany.