Bitcoin Price Key Highlights
- Bitcoin price tumbled down to the bottom of its long-term triangle but bulls keep buying on dips.
- Support continues to hold so another test of the resistance at $6,600 could take place.
- Technical indicators, however, are giving mixed signals on whether support might keep holding or not.
Bitcoin price has bounced off the bottom of its triangle once more and is setting its sights on the top.
Technical Indicators Signals
The 100 SMA is still below the longer-term 200 SMA on the daily time frame to hint that the path of least resistance is to the downside. In other words, the selloff is more likely to gain traction than to reverse. Then again, the gap between the moving averages is narrowing to signal that bearish momentum is slowing.
Stochastic is indicating oversold conditions and might be ready to pull up, indicating a return in bullish pressure. This could be enough to take price back up to the top of the triangle, which is right around the 50 SMA dynamic inflection point. RSI is also starting to turn higher to signal that buyers are ready to regain control.
Bitcoin price is trying to keep its head afloat after the recent selloff as a break below this level could pave the way for a prolonged slide. Note that the chart pattern spans around $6,000 to $10,000 so the resulting slide on a breakdown could be of the same height.
Bulls have repeatedly defended this area as a number of investors are buying on dips. Some say, however, that only HODL-ers are in the game at this point, as the lower highs of bitcoin price also reflect increased selling pressure.
Still, there are a few things to look forward to, including a much-anticipated rebound before the end of the year. Some believe that this could be spurred by an approval of bitcoin ETFs by the SEC but recent regulatory updates haven’t been so positive.
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