Bitcoin (BTC) Price Watch: Still Some Selling Pressure Left?

Bitcoin Price Key Highlights

• Bitcoin price is still consolidating inside its falling wedge pattern seen on the daily time frame.
• Price tumbled sharply upon hitting resistance and is setting its sights back on the bottom.
• There’s also strong support around the $6,000 mark, which explains why bitcoin price is consolidating here.

Bitcoin price is currently pausing on its slide but may have one more push lower to go as it has yet to test the wedge bottom.

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. Sustained selling pressure could take bitcoin price to the bottom of the wedge closer to $5,700.

RSI looks ready to turn higher, though, suggesting that bulls might take over from here and spur another bounce to the top. The 100 SMA might also hold as nearby dynamic resistance around $6,800 to $7,000. Sustained bullish pressure could lead to a move past the wedge top at $7,000 but the 200 SMA might also hold as dynamic resistance.

Stochastic has already made it to the oversold region to signal that sellers are feeling exhausted. Turning back up could bring bullish momentum to the mix. A breakout in any direction could lead to a rally or selloff that’s the same height as the wedge formation.

BTCUSD Chart from TradingView

Market Factors

Bitcoin price may still be on shaky ground but it’s also worth noting that in times like these, this particular digital asset tends to exert its dominance versus its rivals. This alone could be enough to keep price supported even as altcoins suffer more declines, serving as a sort of safe-haven in this particular industry.

Besides, some traders are still holding out for the SEC ruling on bitcoin ETF applications, hoping that this could be the catalyst needed to spur a large rebound before the end of this year.