Bitcoin Price Key Highlights
- Bitcoin price was trading inside an ascending triangle pattern as illustrated in a previous article.
- Price broke below support, indicating a pickup in bearish momentum and a likely drop to the triangle lows around $580.
- Technical indicators are also suggesting that further declines are possible.
Bitcoin price broke below its triangle support to indicate that the selloff isn’t over yet.
Technical Indicators Signals
The 100 SMA is below the 200 SMA so the path of least resistance is still to the downside. In addition, these moving averages held as dynamic inflection points and pushed bitcoin price down. However, the gap between the two moving averages has closed and an upward crossover seems imminent, likely indicating a return in bullish pressure.
If so, bitcoin price could pull back to the broken triangle support before resuming its drop. A stronger return in buying momentum could lead to a test of the triangle resistance at $680.
Stochastic is on the move down, confirming that sellers have taken control. RSI is also heading south so bitcoin price could follow suit. However, once these oscillators reach the oversold regions and turn higher, buyers could regain strength. Bitcoin price is now nearing an area of interest at $600.