Bitcoin Price Key Highlights
- Bitcoin price made a strong bounce earlier but it appears to be part of a short-term correction to an area of interest.
- Price previously broke below a symmetrical triangle consolidation pattern and is now pulling back to the broken support.
Bitcoin price might be ready to resume its selloff if the area of interest near the 38.2% Fibonacci retracement level holds as resistance.
Bearish Divergence Seen
Bitcoin price appears to have hit resistance at the $330 area or 38.2% Fib level, which coincides with the dynamic inflection point at the 100 SMA. This short-term moving average is below the longer-term 200 SMA, signifying that the path of least resistance is to the downside and that the selloff might carry on.
If so, bitcoin could fall back to its latest lows around $315.50 or even make new ones if bearish pressure is strong enough. Stochastic is already indicating overbought conditions and a bearish divergence from its highs last week, adding more confirmation that sellers could take control.
RSI is also heading lower, which