Bitcoin Price Technical Analysis for 05/20/2016 – Ready for a Long-Term Slide?

Bitcoin Price Key Highlights

  • Bitcoin price has formed higher lows and lower highs, creating a symmetrical triangle consolidation pattern on its daily and 4-hour time frames.
  • Price seems to have finally made a break below the triangle support, indicating that bears have taken control.
  • If so, bitcoin could be due for a prolonged drop, possibly until the triangle bottoms at $350.

Bitcoin price made a downside break from the long-term consolidation pattern, signaling that a selloff is about to take place.

Technical Indicators Signals

The 100 SMA is still above the 200 SMA on the daily time frame but it has already made a downward crossover on the 1-hour chart, an early signal that a downtrend is brewing. The moving averages on this long-term chart are closing the gap, though, so a downward crossover might also happen soon.

For now, bitcoin price is eyeing the following nearby support levels: the dynamic inflection points at the 100 SMA and 200 SMA, near-term support at $400, and the next floor at $380.

Stochastic is on the move down, confirming that bears are on top of the game and that further declines are likely. RSI is still on middle ground but seems to be edging lower, also suggesting that bearish momentum

Read more ... source: TheBitcoinNews

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