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.