Bitcoin Price Key Highlights
- Bitcoin price recently broke below a long-term ascending triangle formation and is currently stuck inside a short-term consolidation pattern.
- Zooming in on the 1-hour chart reveals that the tight range looks like a bearish flag, hinting that a continuation of the selloff is in order.
- In that case, a break below the support $425 at could lead to further losses for bitcoin price.
Bitcoin price has taken a pause from its recent sharp drop, as sellers are waiting for more downside pressure.
Clues from Technical Indicators
Most of the technical indicators on the 1-hour chart of bitcoin price seem to suggest that more losses are possible. The short-term 100 SMA has just crossed below the longer-term 200 SMA, indicating that the path of least resistance is to the downside.
If a pullback occurs, the moving averages might be able to hold as dynamic resistance levels near the former support at $440-450. A break above this area, however, could signal that bullish momentum is taking hold once more.
Meanwhile, stochastic is pointing south after spending some time in the overbought zone. This means that sellers are ready to take the upper hand again, possibly pushing bitcoin price to the next support around $400.