Bitcoin Price Key Highlights
- Bitcoin price also broke below the longer-term triangle support and is aiming lower.
- This follows a short-term triangle consolidation break, signaling that further losses are underway.
- Price is now closing in on a couple of support areas left before more sellers step on the gas.
Bitcoin price has broken below one triangle pattern after another and has only a few support zones left for bulls to defend.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside or that the selloff is more likely to gain traction than to reverse. The 100 SMA is also close to the top of the falling wedge highlighted below to add to its strength as a ceiling. However, it’s also worth noting that the gap between the moving averages is narrowing to indicate slowing bearish pressure.
Stochastic is still heading south so bitcoin price could keep following suit until oversold conditions are met. This oscillator has plenty of room to fall before reaching that area, so selling pressure could stay in play for a bit longer.
RSI is also heading lower to signal the presence of bears that could take bitcoin price to the bottom of the falling wedge around $5,600 or at least until the latest lows closer to $5,800. A break below this region could set off an even steeper drop.
Risk aversion continues to weigh on cryptocurrencies, which are already on shaky footing owing to the spotlight on regulatory developments. Earlier on, the IMF warned of cybersecurity risks related to these assets and the FSB downplayed these by highlighting their weaknesses.
The SEC has also been busy cracking down on potentially fraudulent ICO cases, so traders are seeing slimmer chances of the bitcoin ETF applications being approved.