Bitcoin Price Key Highlights
- Bitcoin price is still heading lower as it trades below a descending trend line on the 1-hour chart.
- Price looks prime for a pullback as it hovers above the $6,100 area, and bears might be waiting at the trend line.
- Applying the Fibonacci retracement tool also shows where sellers might jump in.
Bitcoin price is trending steadily lower below a descending trend line and might be ready to make a correction soon.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse.
However, RSI is starting to climb out of the oversold region to signal that buyers are taking over while sellers take a break. Stochastic is also heading north, so bitcoin price could follow suit. This might be enough to spur a small pullback to the levels marked by the Fibonacci retracement tool.
The 50% level is closest to the descending trend line around $6,650 while the 61.8% Fib lines up with the 100 SMA dynamic inflection point and longer-term area of interest at $6,800. The 38.2% Fib is at $6,526 and might also hold as resistance in a shallow correction.
A break past the trend line could also hit an upside barrier at the swing high of $7,156.30 near the 200 SMA dynamic inflection point.
Bitcoin price is still having a rough time as risk-off vibes in the financial markets stemming from resurfacing trade war troubles hit riskier assets like cryptocurrencies hard. The industry is already in selloff mode for the week, so the pickup in risk aversion escalated the FUD sentiment weighing on bitcoin and its peers.
Many also blame the SEC announcement to delay their decision on bitcoin ETF applications to September as another factor keeping uncertainty in play for cryptocurrencies.