Bitcoin has formed lower highs and lower lows to operate within a downtrend channel within 1 hour. The price is currently testing the fund and it seems that the bulls are still defending the support.
A rebound from this level could bring the bitcoin back to the channel resistance, and the dynamic resistance at 50 SMA and 100 SMA could add force to the ceiling. The 100 SMA is below the 200 longer-term SMA to indicate that the path of least resistance is down or that the selloff is more likely to resume rather than reverse.
RSI indicates oversold conditions, however, so sellers may need to pause and let buyers take over. Stochastic is also in the oversold region to report that the bears are exhausted. Both oscillators may have to start moving higher before buying pressure returns
Much of the fall in bitcoin prices is attributed to the FUD (fear, uncertainty, doubt) that usually comes in I play in moments like these. There was also a lack of positive news that traders are hoping to get to support the previous rallies.
One factor that also keeps earnings under control is the SEC's decision to delay the ruling on another bitcoin ETF application for September. This has already been reported previously but the alert contained more details, such as 1,300 comments on the proposed change of rules to list and exchange shares for SolidX and VanEck.
With that, many are worried that bitcoin still has not the minimum and could reach new lows before making the long-awaited rebound for the year. Some say that the recovery may not even take place at all.
Market sentiment could remain the main driver of bitcoin prices for the coming days, as traders continue to resist for other catalysts. It is reported that Goldman Sachs is examining the custody offer for cryptocurrency funds, throwing the spotlight back on institutional interest, but this has failed to keep bitcoins afloat.