Bitcoin Price Key Highlights
- Bitcoin price is trending below a short-term descending trend line as it hovers at the long-term floor.
- Traders are likely waiting for the next catalysts to decide which direction the breakout could take.
- Technical indicators appear to be suggesting a slowdown in bullish momentum soon.
Bitcoin price is still trending lower on the short-term time frame but buyers are defending the long-term floor.
Technical Indicators Signals
The 100 SMA is still above the longer-term 200 SMA but is gearing up for a bearish crossover to signal a pickup in selling momentum. In that case, price could have stronger odds of breaking below the $6,000 support zone and trending lower.
Price is also moving below a short-term descending trend line, which is keeping near-term gains in check. A break past this level could still encounter some selling pressure at the dynamic inflection points on the moving averages.
RSI is turning higher after previously climbing out of the oversold area, though, so there may still be a pickup in buying pressure from here. Stochastic is also heading higher to suggest that buying momentum could stay in play for a bit longer. Once both oscillators reach overbought levels and turn lower, selling pressure could return.
Market Factors
Bitcoin price continues to struggle to keep its head afloat after a couple of rough weeks, the latest of which featured a decision by the SEC to delay their ruling on remaining bitcoin ETF applications.
With that, traders could stay on edge until September or when the decision is announced. Even then, another denial for the proposed rule change could mean more losses for bitcoin price and the rest of its cryptocurrency peers. Approval, on the other hand, could be the positive catalyst that investors are waiting for in order to sustain the expected rebound for the remainder of the year.
