Bitcoin Price Key Highlights
- Bitcoin price has broken below that near-term area of interest and is setting its sights on the next support zone.
- Price could fall to the very bottom of its range visible on longer-term charts, where buyers may be waiting.
- Technical indicators reflect weakening bullish momentum and a return in selling pressure.
Bitcoin price broke below the resistance turned support zone at $6,300 and is on track towards testing the next floor.
Technical Indicators Signals
The 100 SMA crossed below the longer-term 200 SMA to hint that the path of least resistance is now to the downside. This basically means that the drop is more likely to continue than to reverse. A pullback, which appears to be happening at the moment, could hit resistance at these dynamic inflection points.
RSI is still on the move up to show that there’s some buying pressure left, but the oscillator is also closing in on the overbought zone to signal weakening bullish momentum. Turning lower could bring sellers back in and lead to a move to the support at $5,800.
Stochastic has already reached the overbought zone to signal that buyers are exhausted and might let sellers take over. Stronger selling momentum could even lead to a break of the lows and a continuation of the slide.
Bitcoin had a lot to contend with this week, starting from negative remarks from well-known economists and the security breach on Bancor. This renewed doubts in the industry and likely spooked several traders into liquidating their holdings again.
Although bitcoin is showing more downside potential, it is still within bounce territory and could regain ground if the upcoming week comes with positive catalysts. For now it is also being sensitive to overall market sentiment and is giving up gains while traders return to stocks and commodities on renewed risk appetite.