Bitcoin Price Key Highlights
- Bitcoin price recently made a sharp selloff, breaking below a short-term floor around $620 and bouncing off the $570 area.
- Bearish momentum could still be in play, although a correction to the broken support seems imminent.
- Technical indicators are also suggesting that the selloff could resume at some point.
Bitcoin price is pulling up from its sharp drop but could encounter resistance at the nearby inflection points.
Technical Indicators Signals
The 100 SMA is starting to cross below the longer-term 200 SMA to show that the path of least resistance is to the downside. Meanwhile, stochastic is climbing but nearing the overbought zone, also to show that bearish momentum is building up.
Still, bitcoin price has room to pull up to the next resistance levels, which might be located around the moving averages’ dynamic inflection points around $615. If this area keeps gains in check, price could resume its drop to the previous lows, possibly when stochastic starts turning down from the overbought region as well.
However, if bitcoin price breaks past the moving averages and the downward crossover fails to materialize, bulls could take this as a chance to prop the cryptocurrency back up to the next ceiling at $625-630, depending on upcoming event