Bitcoin Price Key Highlights
- Bitcoin price recently broke below a short-term uptrend formation, signaling that a selloff was in order.
- On the 4-hour time frame, bitcoin is showing more reversal signals after it failed in its last two attempts to break past the $590 area.
- A small double top pattern can be observed on this chart, with price still gearing up to test the neckline support.
Bitcoin price could be due for more losses once it breaks below the double top neckline around $560.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA on this time frame, confirming that the path of least resistance is to the downside. However, the gap between the moving averages is narrowing, which suggests that an upward crossover and return in bullish pressure could be possible.
Stochastic is also on the move up, hinting that buyers could take control of price action. A bit of bullish divergence can be seen since stochastic made lower lows since mid-August while price had higher lows then. In that case, bitcoin price could head up to the previous resistance around $590-600, which is close to the 200 SMA dynamic inflection point.
On the other hand, a strong break below the neckline could send bitcoin