Bitcoin Price Key Highlights
- Bitcoin price is still retreating from its recent rally, possibly gearing up for another test of the Fibonacci retracement levels seen on the 4-hour time frame.
- A bounce off the Fib levels or rising trend line connecting the latest lows of price action could put bitcoin price on track towards the previous highs at $380.
Bulls could return on a test of the area of interest at $340, which lines up with the 61.8% Fib, trend line, 100 SMA, and former resistance.
Stochastic is on the move up, suggesting that buyers are gaining more energy to push bitcoin price back up. RSI is treading slightly sideways but appears to be on its way up as well.
The 100 SMA is below the longer-term 200 SMA, indicating that the path of least resistance is to the downside. A break below the 61.8% Fibonacci retracement level might be enough to confirm the potential selloff.
In addition, a head and shoulders pattern appears to be forming, with the neckline around $350. A long red candle closing below this might also serve as a signal for a looming downtrend.