Bitcoin Price Technical Analysis for 07/21/2016 – Bears Gaining Control!

Bitcoin Price Key Highlights

  • Bitcoin price was previously trading inside an ascending channel before making a break lower, indicating a reversal from the short-term uptrend.
  • Price also broke below the nearby inflection points, which means that sellers are gaining traction.
  • For now, technical indicators are suggesting that the uptrend might still carry on but that could change soon.

Bitcoin price made a downside break from its ascending channel pattern, signaling that a reversal is about to take place.

Technical Indicators Signals

The 100 SMA is still above the longer-term 200 SMA so the path of least resistance is to the upside. However, bitcoin price moved below these moving averages so a downward crossover could be imminent. If so, selling pressure could increase and take bitcoin down to the next area of interest.

Price is currently stalling at a former resistance level around $665, which might hold as support moving forward. Stochastic is indicating oversold conditions and is turning higher, suggesting a return in buying pressure.

If so, bitcoin price could pull up to the broken channel support at $670 before resuming its drop. Stronger bullish momentum could even lead to a climb back inside the rising channel and a continuation of the uptrend.

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Read more ... source: TheBitcoinNews

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