Bitcoin still trends lower inside its descending channel which has been holding on so far this month. The price has bounced off the bottom pulling up to the top, which is holding as resistance once more.
Should sellers return, bitcoin could be taken back down to the nearby support levels marked by the Fibonacci extension tool. The 38.2% level lines up with the swing low at the $3,200 area while the 61.8% level seems to be nearer to the $3,100 channel support. Bitcoin could be taken down by a stronger selling pressure to the 78.6% extension at $3,060 or the full extension at $2,973.9.
The 100 SMA is below the longer-term 200 SMA which tells us that the path of least resistance is to the downside or that the selloff might resume rather than reverse.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin Cash (BCH)
Bitcoin Gold (BTG)
However, the price trades above the 100 SMA dynamic inflection point to indicate the presence of bullish pressure. Price could still make an attempt to break past the channel top and test the 200 SMA dynamic inflection points around $3,450 next.
RSI is finding its way down and before reaching the oversold region, it has a bit of ground to cover. This indicates that sellers could remain in the game and could at least push for a test of the mid-channel area of interest around $3,300.Stochastic has already found its way into the oversold region, indicating that buyers might take over because sellers are becoming exhausted.
Bitcoin bulls have found some hope as pro-bitcoin Mick Mulvaney became the Chief of staff of Donald Trump. Although not directly associated with regulation or other potential industry developments, it seems that buyers are hoping to get a positive update. Still, it looks like the gains might not last as buyers are also quick to book gains at close resistance levels.