Bitcoin Price Key Highlights
- Bitcoin price is still on a decline on the longer-term time frames, with downside momentum building up after its recent breaks below a reversal and consolidation pattern.
- Price might have its sights set on the next long-term area of interest at the $300 level, which coincides with a former resistance level.
- Volatility is picking up, as evidenced by the technical indicators.
Bitcoin price seems poised for more declines, putting it on track towards testing a major support zone visible on the longer-term time frames.
The short-term 20 SMA is crossing below the longer-term 50 SMA, confirming that a downtrend is taking place and that selling pressure could pick up. Price recently made a quick bounce off a nearby support zone, as profit-taking took place, but it looks like bears are ready to take control once more.
However, stochastic is already in the oversold region, which means that sellers are still exhausted. Once this oscillator starts moving higher, bullish pressure could stay in play and pave the way for a larger correction, possibly until the $400 mark.