bitcoin price, bitcoin trading, bitcoin technical analysis Bitcoin Price Key Highlights As hinted in yesterday’s update , bitcoin price was due for a downside break of the triangle support visible on the 4-hour time frame.
Price had been previously consolidating inside a long-term ascending triangle after forming higher lows and testing resistance at $465.
With this downside break, bitcoin price could eventually make its way towards the $400 area of interest.
Bitcoin price could undergo stronger bearish momentum in the coming days after it broke below the ascending triangle support.
How Low Can It Go?
The triangle chart pattern spans $350 to $465 so the resulting breakdown could last by the same amount, although there are near-term support areas visible. The short-term 100 SMA is currently holding as a dynamic support level but it is below the longer-term 200 SMA so the path of least resistance is to the downside. bitcoin price, bitcoin trading, bitcoin technical analysis Stochastic is on the move down, confirming that sellers are taking control and ready to push bitcoin price further south. RSI is also moving lower but is already near the oversold region, which means that bearish momentum could fade soon.
If so, a pullback opportunity to the bottom of the triangle around $450 could emerge, allowing more sellers to enter at a slightly better price. A larger correction could place bitcoin price back inside the triangle and on the way to test the resistance once more.
If this move proves to be a fakeout, bulls could gain more traction in pushing bitcoin price back above the triangle resistance and onto the previous year highs closer to $500. However, market sentiment is suggesting that the dollar is enjoying more support.Should the moving averages move further apart, bearish momentum could pickup. This could trigger sharper […]