Bitcoin (BTC) Price Analysis: Sellers Aiming for $3,100?

Bitcoin broke below the bottom of its long-term descending triangle and could be setting its sights on the next area of interest.

Bitcoin (BTC) Price Analysis: Sellers Aiming for $3,100?

Bitcoin chalked up yet another day of major losses as bearish momentum gained traction after the wedge and triangle breakdown. Price might be aiming for the bottom of the long-term descending channel from here.

This potential floor lines up with a long-term area of interest or former resistance turned support seen on the weekly chart. However, note that the triangle pattern is around $5,000 tall so the resulting breakdown could last by the same height, possibly taking bitcoin all the way down to the $1,000 mark.

Still, the 100 SMA is above the longer-term 200 SMA on this weekly time frame to signal that the path of least resistance is to the upside. In other words, there’s still a chance for long-term support areas to hold. Bulls might still be inclined to buy on dips after all, but it could take longer before the recent slide is undone.

Stochastic has been hovering around the oversold region for quite some time, indicating that bears are exhausted and that it’s time for bulls to take over. However, the oscillator has yet to pull higher in order to confirm that bullish momentum is picking up. RSI has also dipped into the oversold region to signal that sellers must be tired.

There seems to be no stopping the slide in the crpyto markets as bearish forecasts continue to pile in. Even the expected pickup in institutional investments early next year is looking like a long shot as investors may be discouraged by this recent slump.

FUD has been the prevailing sentiment in the markets so it would take a significant catalyst to trigger and sustain a big bounce. It doesn’t help that risk aversion is in play in the general financial markets while stock markets tumble and commodities take hits. Then again, historical price action has shown several instances wherein cryptocurrencies became the preferred “safe-haven” in extreme cases of risk-off flows.

Author: Rachel Lee
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Bitcoin Price Analysis: BTC/USD Small Reversal Formation

Bitcoin might be ready for an uptrend as it formed a double bottom reversal pattern on its 1-hour chart. This is often seen as a classic uptrend signal, provided that price can break past the neckline around the $6,600 mark.

If so, Bitcoin could climb by around $600 or the same height as the chart pattern. The 100 SMA is above the longer-term 200 SMA to suggest that the path of least resistance is to the upside or that the rally could gain more traction. However, the gap between the two moving averages has narrowed enough to suggest that a downward crossover is imminent. In that case, bearish pressure might still return and lead to another test of the bottoms.

RSI looks prime to head south so Bitcoin price could follow suit as sellers take over while buyers take a break. Stochastic has also just made it out of the overbought region to signal a return in selling pressure. A move below the bottoms could confirm that the longer-term slide is resuming.

A pickup in risk-taking has been observed in the broader financial markets on account of softer-than-expected tariffs from both the US and China. Besides, both these announcements have been hinted at in the past weeks so the bullish moves may also indicate profit-taking. Other altcoins have reported some progress, though, so it’s possible that the positive sentiment is also helping keep bitcoin price afloat.

Looking ahead, it seems that Bitcoin bulls are taking things slow while remaining wary of the SEC ruling on bitcoin ETF applications. It looks like markets are pricing in lower odds of an approval, although there still seem to be signs of hope. An approval is being touted as a potential catalyst that could spur the much-anticipated rebound in bitcoin for the year while rejection could reflect yet another setback.

Author: Sara Jenn
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