Bitcoin Price Key Highlights
- Just a few weeks after breaking below a bearish pennant on its 4-hour time frame, bitcoin price has formed yet another continuation pattern.
- Bitcoin price is still stuck inside the triangle or flag formation, with the path of least resistance to the downside since a downtrend is ongoing.
Bitcoin price could be due for another break lower, potentially sending it down towards support at the $300 level.
Mixed Technical Signals
Technical indicators are giving mixed signals though, which means that a downside break isn’t guaranteed yet. For one, the 100 SMA is still above the 200 SMA so a break higher might still be possible.
In that case, bitcoin price could head up to the nearby area of interest at $370-380 where the previous consolidation pattern formed. Stronger bullish momentum could even spur a climb past the $400 mark.
On the other hand, a downside break below the current support at $330 could lead to a tumble all the way down to the $300 psychological floor. Stochastic seems to be on its way down, indicating that sellers are in control of price action. However, RSI is on middle ground and cruising sideways, not really offering any strong directional clues at the