Bitcoin Price Technical Analysis – How Low Can It Go?

Bitcoin Price Key Highlights

  •  Bitcoin price recently formed a head and shoulders pattern on its short-term time frames, signaling that the recent uptrend may be over.
  • Price has broken below the neckline support, which held as resistance on the retest.
  • This adds confirmation that further losses are possible so it’s time to look at the nearby inflection points and areas of interest for potential targets.

Bitcoin price seems to be establishing a downtrend after confirming a reversal pattern, and technical indicators support this view.

Technical Indicators Signals

The 100 SMA is still below the 200 SMA so this selloff could carry on. In addition, the 100 SMA appears to have held as a dynamic resistance area from here, as it coincided with the pullback to the broken head and shoulders neckline at $655.

Bitcoin price is still stalling at the near-term support around $650 but a break below this area could draw more sellers to the mix. Stochastic is still pointing down and heading south so price could follow suit, possibly setting its sights on the lows near $630.

Keep in mind, however, that stochastic is also nearing the oversold area so a turn in the oscillator could spark a bit of profit-taking as sellers take a break.

Read more ... source: TheBitcoinNews