bitcoin price. at crossroads. newsbtc Bitcoin Price Key Highlights
Bitcoin price is currently in the middle of a corrective wave, pulling up to an area of interest visible on the 4-hour time frame.
Price is testing the broken support zone around $420, which is close to the 61.8% Fibonacci retracement level based on the latest swing high and low on the same time frame.
Resistance appears to have held and technical indicators are hinting that the downtrend could resume.
Bitcoin price is finding resistance at an area of interest and might be ready to resume its slide to the previous lows near $350. Technical Indicators Signals
First off, the shorter-term 100 SMA is below the longer-term 200 SMA on the 4-hour chart, indicating that the path of least resistance is to the downside. In addition, the 100 SMA appears to be holding as a dynamic resistance level at the moment, as it coincides with the 61.8% Fibonacci retracement level and broken support.
Also, the gap between the two moving averages appears to be widening, which is a sign of increasing bearish momentum. The line in the sand for a larger correction is the 200 SMA, as a break above this area could signal that an uptrend is underway.
As for the oscillators, stochastic is already indicating overbought conditions, which means that buyers need to take a break and let sellers take over. This oscillator has yet to cross below the overbought level before confirming that bearish momentum is in play.RSI is on the move up but is closing in on the overbought area, also suggesting that bullish pressure could weaken soon and allow selling momentum to take over. If that happens, bitcoin price might have its sights set on the previous lows at $350 or all the way down to the […]
