Bitcoin Price Technical Analysis for 05/23/2016 – Pullback to Broken Support?

Bitcoin Price Key Highlights

  • Bitcoin price recently made a break below the triangle consolidation pattern as illustrated in the previous update.
  • Price rebounded off the $436 area and is showing a possible correction play.
  • Any of the nearby inflection points might hold as resistance, all the way up to the broken support at $455.

Bitcoin price is pulling up from its recent dive, offering a better entry point for sellers looking to catch the downtrend.

Technical Indicators Signals

The 100 SMA is above the 200 SMA on the 4-hour time frame so the path of least resistance might still be to the upside, generating more gains for bitcoin price. However, the gap between the moving averages is narrowing so a downward crossover could be seen later on, drawing more bears to the mix.

Stochastic is already on the move down from the overbought area, indicating that selling pressure is starting to kick in. RSI, on the other hand, is treading around middle ground.

A higher pullback could last until the moving averages just above $450 or all the way up to the broken triangle support at $455. If these areas hold as resistance, bitcoin price could revisit the recent lows at $436 or create new ones closer to

Read more ... source: TheBitcoinNews