- The price of Bitcoin tends to decrease after breaking below the neck of your head and shoulders pattern.
- This is a classic investment signal that indicates that the price could fall to the same height as the formation, which ranges from $ 9,500 to $ 11,500.
- The technical indicators also show that the short-term sale could continue.
- The price of Bitcoin confirmed a potential short-term sale by breaking under the neck of its head and shoulders pattern.
Important technical indicators
The simple average of 100 is below the simple average of 200 to longer term to indicate that the path of least resistance is down or that the settlement can continue. These moving averages could also be maintained as dynamic resistance levels in case of corrections.
The stochastic is already indicating overbought conditions and could be ready to go down, attracting more sellers. A break below the $ 9,300 level could be enough to confirm that the bears are gaining traction.
However, RSI has some space to scale, so the price of bitcoin could still attempt a larger correction. The 100 SMA is just below the psychological resistance of $ 10,000, while the 200 SMA is close to $ 10,500.
Market factors that can affect the price
The positive sentiment in the Bitcoin industry seems to have faded, as traders have turned their attention to the recent accusation made by the SEC over a Bitcoin exchange and its founder for allegedly defrauding customers.
At the same time, demand for dollars continued for most of the previous week as the Fed’s expectations were revived. This week, the focus is on the testimony of the FOMC chief, Powell, as the Traders are eager to discover how they plan to focus on adjusting monetary policy from here.
Keep in mind that the price of Bitcoin has been marketed along with higher risk assets, such as stocks and commodities, taking advantage of risk streams instead of acting as a safe haven.
In other news, Bank of America recently warned its clients about the risks of cryptocurrencies, while reporting that Austria is planning new regulations for the industry and ICO.