Bitcoin Price Key Highlights
- Bitcoin price broke below the ascending channel support on its 1-hour chart, signaling that a reversal from the uptrend is in order.
- Technical indicators are still showing that the rally could resume at some point.
- A pullback to the broken channel support could take place before the selloff gains traction.
Bitcoin price seems to be done with its climb, as sellers pushed for a break of the near-term channel support.
Technical Indicators Signals
The 100 SMA is still above the longer-term 200 SMA so the path of least resistance is still to the upside. However, the gap between the moving averages is narrowing so a downward crossover might be possible, indicating a return in selling pressure.
A continued drop could take bitcoin price to the $575 area next, then onto the longer-term area of interest at $550. However, stochastic is pointing up and might be hinting that bulls could put up a fight. In that case, bitcoin price could still retreat to the broken support at $580 before heading further south.
A stronger return in buying pressure could take bitcoin back up to the channel resistance close to $590, although it would take a strong market catalyst to let that happen.