Bitcoin Price Key Highlights
- Bitcoin price is still moving inside a range visible on its 1-hour time frame and looks prime for a test of support.
- Price has made it halfway down through the range and could have enough momentum for a move to the bottom.
- Technical indicators are also reflecting the presence of bearish pressure.
Bitcoin price is still in consolidation and could be ready for another test of the short-term range support around $6,360.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside or that the selloff is likely to continue. This could also mean that support is more likely to break than to hold. If that happens, bitcoin price could fall by the same height of the rectangle, which spans around $100.
Stochastic is heading south to signal the presence of selling pressure, which might be enough to take bitcoin to the bottom of the range. This oscillator is already in the oversold region to signal exhaustion among sellers. Turning back up could bring buyers back in and allow support to hold, leading to a bounce back to the top.
RSI is also heading south to reflect that sellers have the upper hand. This oscillator has plenty of room to head lower before hitting oversold levels, which suggests that bears could stay in the game for a bit longer.
Bitcoin price still seems wary of industry developments or might be waiting for bigger catalysts that could sustain gains. Traders are looking to the ICE Bakkt bitcoin futures possibly by next month in order to provide some direction. Recall that CME bitcoin futures were blamed for the massive drop that ensued last year, so there is some degree of concern among investors once more.
