Bitcoin (BTC) Price Watch: One Downside Break After Another
Bitcoin Price Key Highlights
- Bitcoin price has broken below one triangle after another as bearish momentum strengthens.
- Price is now trading below the descending triangle bottom of $6,700 after previously falling below the symmetrical triangle.
- This signals that further losses are underway, but oscillators suggest otherwise.
Bitcoin price keeps tumbling below one support after another, but oscillators signal a possible bounce.
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. This means that the selloff is more likely to resume than to reverse.
The 100 SMA also lines up with the top of the triangle to add to its strength as a ceiling. Bearish momentum could keep strengthening while the gap between the moving averages continues to widen.
However, RSI is already indicating oversold conditions and looks ready to pull up. This signals that buying pressure could return and lead to a bounce back above the horizontal support or even inside the symmetrical triangle.
Stochastic is also nearing oversold territory to signal that sellers are getting exhausted and may be willing to let buyers take over. A move back above $6,700 could encourage more investors to jump back in instead of liquidating their holdings.
Cryptocurrency traders are still on edge when it comes to the ongoing investigation into price manipulation of digital assets. If evidence strongly suggests that bitcoin and its peers were subject to such, trust in the industry could continue to falter.
It has been suggested that Tether was used to manipulate bitcoin price back in 2014, and more reports suggesting that other kinds of market manipulation took place would keep dampening bitcoin gains.
For now though, bitcoin price had a bit of reprieve when the dollar sold off after the FOMC decision, even as the central bank hiked rates and signaled room for two more tightening moves this year.