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Bitcoin has formed lower highs and lower lows to operate within a downtrend channel in its 1 hour time interval. The price has rebounded against resistance and seems ready to resume slippage to lowered targets marked by the Fib extension tool.
The price is already testing the 50% extension in the central channel's interest area and the sustained sales pressure could bring it down to 61.8% to $ 6,800. This aligns with a previous level of long-term resistance that may still contain some purchase orders.
From there, a steady decline could bring bitcoins to the 78.6% extension to $ 6,700 or the full extension to channel support around $ 6,600. A break below these levels could confirm that the bitcoin is far from being the starting point.
The 100 SMA is safe under the 200 long-term SMA to confirm that the path of least resistance is downward. In other words, the sale is more likely to persist than to reverse. The short-term moving average is just above the top of the channel, adding an additional ceiling in the event of an upward recovery.
CSR continues to aim, therefore, buyers could still fight. In the same way, the stochastic moves north so that the bitcoin can follow its example.
Lack of major positive updates over the last two weeks has made bitcoins vulnerable to profits and more sensitive to negative comments. This has also prompted many opponents to come out and affirm that the bubble is starting to burst.
Still, the Wall Street bull Tom Lee has noticed that the bitcoin has been able to recover its market share and that this is a positive sign. The recent confirmation that Goldman Sachs is betting on the cryptocurrency sector could also be sufficient to remind operators that institutional funds are flowing, probably keeping the industry supported in the long run.
