Bitcoin Price Technical Analysis for 08/15/2016 – Support Turned Resistance

Bitcoin Price Key Highlights

  • Bitcoin price is still trending lower on its short-term charts, following a break below consolidation and reversal formations.
  • Price could pull up to the descending trend line on the 1-hour chart before resuming its slide, giving sellers an opportunity to catch the downtrend at a better price.
  • Technical indicators are confirming that a downtrend could be in the works.

Bitcoin price could continue to drop after completing a correction to the area of interest at $580.

Technical Indicators Signals

The 100 SMA is making a downward crossover from the 200 SMA to show that bearish pressure is getting stronger. Once this downtrend signal is completed, more sellers could jump in the game and push for a test of the recent lows at $565.

Bitcoin price could find resistance at the descending trend line connecting the latest highs of price action since August 10, as this lines up with a former support zone around $580. A move past this area could still draw resistance from the dynamic inflection points around the moving averages.

Stochastic is still heading up, which suggests that buyers are still in control of bitcoin price action for now but could let sellers take over once the oscillator reaches the overbought region

Read more ... source: TheBitcoinNews