Bitcoin Price Key Highlights
Bitcoin price has been trending lower, following a break below a short-term triangle pattern.
Price bounced off the long-term triangle support as shown in the previous update but might be encountering stronger selling pressure.
A descending trend line can be drawn to connect the latest highs of price action since the third week of February and a pullback is imminent.
Bitcoin price could be due for another steady drop if the trend line and Fibonacci retracement levels hold as resistance. Potential Resistance Levels
Applying the Fibonacci retracement tool on the latest swing high and low shows these resistance levels: 50% Fib at $411.66 and 61.8% Fib at $418.72, which is close to the trend line at $420.
In addition, the 200 SMA could hold as a dynamic inflection point, keeping gains in check and allowing the selloff to resume as this lines up with an area of interest or former short-term support zone.
Also, the 100 SMA is safely below the longer-term 200 SMA and is increasing the distance, reflecting the presence of and buildup in bearish pressure. RSI is still pointing up but is nearing the overbought level so buyers are feeling tired while stochastic is indicating overbought conditions but has yet to turn lower. Market Events Stronger than expected jobs data triggered a downside break of the $420 support for bitcoin price and a test of the $380 lows but profit-taking swiftly took place. Trader might be easing up on their dollar positions ahead of the central bank events this week, particularly that of the ECB.The European Central Bank is widely expected to ramp up their easing efforts this month in order to boost inflation. Their previous expansion turned out to be a disappointing one and spurred risk-on flows, but they might […]
