The price of Bitcoin has improved slightly compared to the day yesterday. Reporting a 1.12% retracement bringing the price to $ 10,200.
- The Bitcoin price recently formed a head and shoulders pattern on its 1 hour chart.
- The price has broken below the neckline to show that a bearish trend is underway.
- The pattern of the chart covers more than $ 1,000 in height, so the resulting settlement could be the same size.
- The Bitcoin price broke under a short-term head and shoulders pattern to indicate that there are more losses on the cards.
Technical indicators in the analysis
The simple average of 100 is above the simple average of 200 to longer term to show that the route of least resistance is up or that the recovery could continue. However, the gap between moving averages has narrowed to show that the bearish momentum could begin.
The stochastic is hovering oversold levels and could go higher to show that buyers are ready to re-enter. The RSI is also in the overselling area, which means that the sellers are exhausted.
In that case, a broken neckline retraction of around $ 10,250 could occur before the sales pressure increases more traction.
Important market factors
The United States dollar gave ground to most of its peers in recent trading sessions as appetite for risk increased. However, the price of Bitcoin did not benefit from this, as it is blamed on the profit taking by the recent fall.
When approaching the longer-term charts, it shows that the price reached a long-term interest area of $ 12,000, which caused some settlement orders. This marked the second consecutive day of declines for Bitcoin, as positive sentiment about recent regulatory news seems to be fading.
With that, the price of Bitcoin could need a new positive catalyst before resuming its rally. Otherwise, it could revise the minimums closest to the $ 6,500 level as more and more officials express their doubts about the cryptocurrency.
Apart from that, the SEC accused the former BitFunder cryptocurrency exchange and its founder Jon E. Montroll of fraud for operating the operation as an “unregistered stock exchange” and allegedly defrauded customers.