Highlights of the Bitcoin price key
The price of Bitcoin tends to decrease further after having recently retreated to a descending trend line in its 1 hour time frame.
Price is looking at the next downward targets set by the Fibonacci extension tool.
The technical indicators are giving mixed signals, but it seems that the bears could still win.
The price of Bitcoin has fallen again after a quick reversal, possibly trying to make new lows from here.
Technical indicators Signals
The SMA 100 is below the SMA 200 in the longer term to confirm that the path of least resistance is downward. In other words, mass selling is more likely to be resumed than vice versa. Moving averages are also close to the descending trend line, adding additional layers of resistance in the case of another setback.
The stochastic is pointing up to indicate the presence of bullish pressure, so the price of bitcoin could still bounce from here. When reaching overbought levels, the oscillator could return to the south to attract sellers again.
The next potential support is in the 38.2% extension of $ 6495 near the swing minimum. The 50% extension is $ 6185.90 and the extension of 61.8% is $ 5876.60. The full extension is at $ 4875.50.
If the bitcoin price is able to maintain its rebound at current levels, a double bottom pattern could be formed and this is often considered a classic investment signal. That way, the neckline would be $ 7500 and a jump up could lead to a rally of the same height as the formation.
Market factors
Analysts point out that the global uncertainty driven by trade tensions between China and the United States is one of the main culprits of the fall in the price of bitcoin. After all, merchants feel less hungry for risk, and instead put their funds in safe assets like the dollar and bonds.
In addition, traders could have taken the recent reversal as an opportunity to liquidate their positions at better prices, fearing that the rallies will not last long in this market environment.
Expected trend for today: cordyline