Bitcoin Price Technical Analysis for 04/29/2016 – Bears Getting Stronger?

Bitcoin Price Key Highlights

  • Bitcoin price recently made a sharp drop, breaking below several key support zones.
  • Price bounced off the $435 area and appears to be making a pullback from its recent dive.
  • Bitcoin is testing the resistance at the area of interest and 38.2% Fibonacci retracement level on the latest swing high and low on the 1-hour time frame.

Bitcoin price could be due for another selloff if the short-term resistance levels keep gains in check.

Technical Indicators Signals

The 100 SMA is still above the longer-term 200 SMA so the path of least resistance is still to the upside. However, the gap between the moving averages is narrowing so a downward crossover might take place. In addition, the 200 SMA lines up with the 50% Fib while the 100 SMA coincides with the 61.8% Fib.

Stochastic is heading down from the overbought area, which confirms that sellers are taking control and might push bitcoin price back to the previous lows or much lower. RSI, on the other hand, is on the move up so price could follow suit and make a larger retracement to the higher Fib levels.

A break past the 61.8% Fib and 100 SMA could signal that a longer-term uptrend is in

Read more ... source: TheBitcoinNews