Bitcoin Price Key Highlights
- Bitcoin price is still in a downtrend on its longer-term time frames and today’s market catalyst could allow it to resume its selloff.
- Price has yet to test the descending trend line connecting the highs of price action on the 4-hour chart.
- Technical indicators seem to be hinting that an upside breakout is possible.
Bitcoin price is still deciding whether to bounce from or break above the descending trend line, depending on how U.S. data turns out.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA so the path of least resistance could still be to the downside. However, the gap between the moving averages is narrowing so an upward crossover looks possible. In that case, bullish momentum could pick up and lead to a break above the trend line resistance around $600.
Stochastic is heading north from the oversold region, hinting that sellers are already tired and might let buyers take over. If not, bitcoin price could resume its drop to the nearby support at $560 or lower.