Bitcoin Price Technical Analysis – Start of a Reversal?

Bitcoin Price Key Highlights

  • Bitcoin price was previously trending higher on the 1-hour time frame, moving above an ascending trend line.
  • Price made a downside break of support yesterday as the dollar surged.
  • This could mark the start of a reversal from the earlier trend, although a quick correction could be possible.

Bitcoin price could be in for a downtrend on its short-term charts, as it broke below an ascending trend line.

Technical Indicators Signals

The 100 SMA is above the longer-term 200 SMA so there’s still a chance for a bounce. Price rallied off the $450 level as predicted in an earlier article and might be due for a pullback to the broken support near $457.

Stochastic is indicating oversold conditions so profit-taking around these lows could be seen. RSI has moved lower during the selloff but is back in middle ground, barely offering strong directional clues at the moment. Still, the oscillator is pointing up so bullish pressure could be in play.

If the $457 area holds as resistance, bitcoin price could resume its drop to the $450 lows or aim for new ones. On the other hand, a rally past the $457 level could allow the climb back up to $470 to resume.

Read more ... source: TheBitcoinNews