Bitcoin Price Key Highlights
- Bitcoin price is still hovering at the area of interest visible on the 4-hour time frame as buyers and sellers battle it out.
- A small consolidation pattern can be seen at current levels, and this could be seen as a bearish continuation signal.
- If any of the retracement levels hold, an inverse head and shoulders reversal pattern could form.
Bitcoin continues to hold on to the area of interest, still deciding whether to make a bounce and reversal or a continuation of the slide.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to suggest that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. The moving averages held as dynamic resistance also.
However, the gap between the moving averages has narrowed enough to suggest that a bullish crossover may be imminent. In that case, bullish momentum could pick up and take bitcoin price to the swing high or higher.
If that happens, an inverse head and shoulders reversal pattern could be formed. A break past the neckline around $6,850 could signal that further gains are in the cards, possibly leading to a rally of the same height as the reversal formation.
RSI is climbing out of oversold territory to indicate a return in bullish pressure as well. Stochastic just reached the oversold region and might also be ready to move north, so bitcoin price could follow suit. A break below the $6,200 level or 61.8% Fib, on the other hand, could lead to a dip to the support at $5,800.
Bitcoin price appears to be having a bit more trouble getting back on its feet as negative remarks from well-known economists earlier in the week dampened investor sentiment.
It doesn’t help that trade war troubles have returned to haunt financial markets when the US released its list of Chinese goods to target for additional tariffs. The US dollar has been raking in safe-haven gains across the board on strength in the US economy and hawkish Fed commentary.