Bitcoin is still hovering at the area of interest right on the ascending trend line visible on the 4-hour time frame, still deciding whether to make a bounce or a break. Technical indicators are giving mixed signals on a continuation, reversal, or consolidation.
First up, the 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the downside. This means that the uptrend is more likely to resume than to reverse. However, price has fallen below the 100 SMA to signal that there is a bit of selling pressure in play. The 200 SMA around the $3,700 mark could still hold as dynamic support when tested.
RSI is heading higher but is still cruising around the middle ground to indicate that further consolidation might be in the works. This oscillator has some room to climb before hitting the overbought zone, which suggests that buyers could stay in control for a bit longer. In that case, bitcoin could still recover to the swing high at $4,300 or higher.
However, stochastic is turning lower after recently hitting the overbought zone, which suggests that buyers are tired and that sellers might take over from here. A break below the 200 SMA could be enough to confirm that a slide is in the works.
Bitcoin seems to have run out of steam on its earlier uptrend as buyers continue to liquidate their holdings out of disappointment that the $5,000 target wasn’t reached. Still, a number of analysts are maintaining bullish forecasts as price seems to have bottomed out from a technical standpoint.
Besides, there’s a lot to look forward to for the industry, something that was recently highlighted by tech gurus from Apple and Tesla. A pickup in institutional interest could be enough to spur another leg higher, possibly following the launch of Fidelity’s platform this month.
Read more at: https://ethereumworldnews.com/bitcoin-btc-price-analysis-make-or-break-levels/
