The price of Bitcoin reports a slight increase of +1.44 which raises the value above $ 8095, however the price of the cryptocurrency is under a lot of pressure by the bear market.
- The price of Bitcoin continues to lower the trend and is within a downward channel in the time frame of 1 hour.
- The price is currently testing channel support and could be due to a pullback to resistance.
- The application of the Fibonacci retracement tool shows the next potential resistance levels.
The price of Bitcoin could be a very necessary setback, as it tests the bottom of the short-term downstream channel.
The simple average of 100 crossed below the longer-term time frame in this table to indicate that the path of least resistance is downward. The gap is also widening to reflect the strengthening of bearish pressure.
However, the stochastic is recovering from the oversold levels while the price is testing channel support. This indicates that a rebound could occur, possibly bringing the price of bitcoin to Fibonacci retracement levels.
In particular, the 100 SMA is aligned with the 50% Fibonacci retracement level at $ 8400, which adds to its strength as a potential resistance. The 200 SMA matches the top of the channel at the 61.8% Fibonacci retracement level, which could be the line in the arena for a correction.
If any of the Fib levels remain as resistance, the price of bitcoin could resume the fall to the minimum of $ 7,800 or even lower.
The price of Bitcoin has had an impact recently after Twitter announced that it also plans to ban cryptocurrency ads on its platform, following the steps of Facebook and Google. This has led to speculations of weaker volumes and activity in motion.
However, in the longer-term time frames, it can be seen that the bitcoin price is still trading safely above the uptrend line, so another test could generate a stronger rebound. In addition, analysts have pointed out that the crash occurred before the actual announcement of Twitter, so that the taking of profits or other factors may simply be at stake at that time.
On a less pessimistic note, the CBOE encouraged the SEC to allow bitcoin ETFs, citing that “the Commission should not hinder the release of such ETPs to the market.”