Bitcoin Price Key Highlights
- Bitcoin price recently broke below an area of interest marked in an earlier article, indicating that a downtrend might be due.
- Price is now pulling back up to this area for a retest before gaining more traction in its selloff.
- If the near-term resistance holds, bitcoin price could make its way back down to the recent lows at $685.
Bitcoin price is establishing a new downtrend after breaking below an area of interest. More bears are waiting at this retest of the broken support.
Technical Indicators Signals
The 100 SMA is still above the 200 SMA for now but the gap has considerably narrowed, indicating that a downward crossover is in the works. If that materializes, selling pressure could kick higher, allowing bitcoin price to resume its selloff.
Also, the moving averages line up with the descending trend line connecting the highs of bitcoin price action since November 9, adding to its strength as a potential ceiling around $705-710. A move past this area could put bitcoin back in its longer-term climb.
Lastly, stochastic is indicating overbought conditions and is starting to turn lower. This means that buying momentum is exhausted and that sellers could hop back in.
Read more ... source: TheBitcoinNews
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