Bitcoin Price Key Highlights
- Bitcoin price appears to be having trouble resuming its climb, indicating that a short-term reversal might take place.
- Price formed a complex head and shoulders pattern on the 1-hour time frame but has yet to test the neckline support.
- Technical indicators are hinting that the uptrend might still resume at some point.
Bitcoin price formed a head and shoulders pattern on its short-term chart, suggesting that a drop to the $380 area might take place again.
Technical Indicators Signals
The 100 SMA is above the longer-term 200 SMA so the path of least resistance is still to the upside. This means that bitcoin price could still test the previous highs at the $420-245 area.
However, RSI is pointing down so price might follow suit, moving down to the area of interest around $410. A break below this level could confirm that further losses are in the cards. The chart formation is around $30 tall so the resulting breakdown could be of the same size, taking bitcoin price to $380.
Meanwhile, stochastic is pointing up so buyers might still be in control of bitcoin price action. In that case, a move past the previous highs might still be possible unless the oscillator reaches the overbought zone