Bitcoin Price Key Highlights
- Bitcoin price is starting a downtrend on its 1-hour forex chart, with a descending trend line connecting the latest highs since the start of the month.
- Price is currently testing the trend line resistance near the Fibonacci retracement levels and might be ready to resume its slide.
Bitcoin price appears to be finding resistance at the 50% Fibonacci retracement level while technical indicators are hinting that the selloff could carry on.
Correction Almost Over
Bitcoin price already bounced off the 50% Fib on its first test but it seems to be making another pullback to the resistance area, which is right around the 100 SMA dynamic inflection point. This short-term SMA is safely below the longer-term 200 SMA for now, confirming that the path of least resistance is to the downside.
Stochastic is still heading north but is closing in on the overbought region, which means that buyers are starting to feel exhausted. Once the oscillator indicates that the rally is overdone and turns lower, sellers could jump into action and push bitcoin price back to the previous lows at $293.
RSI is also on the move up for now and is already near the overbought area, suggesting that buying pressure could fade