Bitcoin has formed a short-term consolidation scheme and may break out soon.
Bitcoin is still trading below its short-term downtrend line over the 1-hour period to show that the downtrend is intact. The price is currently consolidating into a small symmetrical triangle with the highest lows, and the breakout direction could determine whether a continuation or a reversal is in order.
A candle that closes above $ 6,500 might be enough to confirm an upside break and potential reversal while a candle that closes below $ 6,300 may signal that the downtrend will resume. The 100 SMA is below the 200 long-term SMA to signal that the path of least resistance is downward. In other words, there is a greater probability that the selloff will resume rather than reverse.
The 100 SMA is currently active as a dynamic resistance, while the 200 SMA is just above the trend line to add another level of resistance. The gap between moving averages is also widening to reflect greater sales pressure.
CSR appears to be in decline after the recent abandonment of the overbought region. This reflects that sellers may have the upper hand and push the bitcoin down from here. In the same way, the stochastic is making its way down so that the bitcoin can follow the example.
The cryptocurrencies have had a hard lap in the previous week when the SEC decision to delay the decision on the ETF bitcoin application of VanEck / SolidX sentiment. The optimism was already fading, so it is understandable that investors have been ready to push the sales button even with the slightest negative update.
This time, traders could continue to give other clues about what the US regulator could decide on the rest of the bitcoin ETF applications. These are still open for comments until the last part of September, when the sentence is expiring.
It would take a series of positive updates to relaunch the rallies for bitcoin and its peers, possibly more attention to institutional interests or acquisitions in space.