Bitcoin Price Key Highlights
- Bitcoin price seems to be establishing a downtrend now that it’s forming a descending channel on its 1-hour time frame.
- Price is now testing the channel resistance, still deciding whether to make a bounce or a break.
- Technical indicators seem to be indicating that the selloff could resume but there are also potential arguments for a reversal.
Bitcoin price is hovering at the resistance of the short-term descending channel and could be in for a continuation or reversal.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside, which could take bitcoin price to the channel support at $640. The 200 SMA could hold as a dynamic inflection point and add strength to the channel resistance at $655.
However, the gap between the moving averages is narrowing, hinting that an upward crossover could be possible. In that case, buyers could jump in the potential reversal, especially if a long bullish candle closes above $660.
Stochastic is pointing down and moving south so bitcoin price could follow suit. A bit of bearish divergence can be seen since stochastic made lower highs while bitcoin had higher highs from yesterday. Keep in mind, however, that