Bitcoin Price Technical Analysis for 01/02/2016 – Falling Wedge Sighting!

Bitcoin Price Key Highlights

  • As predicted in the previous article, bitcoin price found resistance at the short-term falling trend line and Fibonacci retracement level.
  • Bitcoin price appears to be forming a falling wedge pattern from here, reflecting a bit of hesitation among sellers.
  • Price looks ready to make a test of the resistance around $375 and might be due for another bounce.

Bitcoin price is currently trending lower and might be able to resume its slide after testing the nearby resistance levels.

Technical Indicators Signals

The 100 SMA is below the 200 SMA, confirming that the path of least resistance is to the downside. In addition, the 100 SMA lines up with the top of the wedge pattern, adding to its strength as a potential resistance level.

Stochastic is heading north, however, which suggests that buyers are in control of bitcoin price action at the moment. RSI is also on the move up and making its way past middle ground so there might be some bullish pressure left.

Once the oscillators reach the overbought levels and turn lower, bitcoin price might follow suit. This could lead to another test of the wedge support near $360-365 or perhaps a break lower.

If so, bitcoin price could fall to

Read more ... source: TheBitcoinNews