Bitcoin is going lower inside a descending channel that seems to have already found a ceiling at the mid-channel area of interest.
If at this point the sellers return, the next potential downside Target is shown by the Fib extension tool on the pullback.
To verify that the path of least resistance is to the downside, the 100 SMA is less than the longer-term 200 SMA. This tells us that the sell off might continue rather than reverse.
Furthermore, the 100 SMA held recently as resistance on the latest bounce might continue keeping gains in check.
Next, the bitcoin could return to the 38.2% Fib or 50% level nearer to the low at $3270. Stronger selling pressure could raise it to the 61.8% level near the channel bottom at $3150 or the 78.6% extension at the $3000 major psychological level. The full extension is seen at the $2731 mark.
RSI seems to lower, signaling the presence of a bearish momentum. However it is presently hesitating at middle ground, indicating the possibility of buyers returning to push for a larger pullback to the top at $4000.
Stochatic is also finding its way South, so Bitcoin might follow while the upper hand lies with the sellers. Analysts are concerned that the bear market might not be over very soon, due to Bitcoin’s inability to bust through close ceilings.
Despite, sellers are gathering at key levels and buyers are also swift to book profits off bounces, maintaining the downtrend.
Before reestablishing any large position, traders are waiting to see some developments in the industry.
Some still believe that early in 2019, a surge in Institutional investment should happen, which should be enough to revive price gains and volumes.
CEO of Binance, Changpeng Zhao feels Amazon could trigger the next bull run.