Bitcoin Price Key Highlights
- Bitcoin appears to have hit a ceiling at the $775 mark, making a break below a short-term consolidation pattern and moving towards the nearby support.
- Price is now trading below the $700 mark and could head further south until $650, which is close to the 38.2% Fibonacci retracement level and a former resistance.
- A bounce off this correction area could allow bitcoin price to resume its climb to the recent highs and beyond.
Bitcoin price gave in to overbought conditions and is in the middle of a large correction to an area of interest.
Technical Indicators Signals
On the daily time frame, the 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. However, the gap between these moving averages is narrowing so bullish pressure might be weakening.
Stochastic is turning down from the overbought zone, which means that buyers are taking a break and allowing sellers to take over from here. RSI is also heading south so bitcoin price might follow suit. A larger correction could last until the 50-61.8% Fib levels, which are close to another area of interest at $600.
A break below these Fibs could spur a drop all the way