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Bitcoin Price Key Highlights
- Bitcoin price is still on a downtrend on its 1-hour chart, moving below a descending trend line.
- Price could be due for a pullback to the falling resistance, which lines up with the Fib levels.
- Technical indicators are suggesting that the selloff could carry on.
Bitcoin price is exhibiting some bearish momentum and could draw more selling pressure on a correction.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA on the 1-hour chart to signal that the path of least resistance is to the downside. This suggests that the downtrend is more likely to continue than to reverse.
The gap between the moving averages is also widening to reflect a pickup in selling momentum. The 100 SMA lines up with the 38.2% Fibonacci retracement level to add to its strength as resistance.
A larger pullback to the higher Fibs or the 200 SMA could still be possible, but RSI looks ready to head south without hitting overbought levels. This signals that bears are eager to get back in on a shallow correction.
Market Factors
Cryptocurrency updates last week have been mixed, with a rough start on Buffet’s remarks and a bit of a pickup on news that ICE is getting ready to launch a bitcoin trading platform.
Apparently these haven’t been strong enough to spur a move past the $10,000 handle, so bears still have the upper hand and bulls are likely being cautious. It has also been reported that the launch of bitcoin futures led to the slump last December, which kept investors on edge that further bitcoin products could draw more selling action.
Nonetheless, more institutional money is projected to flow into the industry and this could mark the start of less dependence on speculative activity and higher volumes.
