Bitcoin is still exchanged below its descending trendline visible in the 4-hour and 1-hour time frames. However, there are indications that downward pressure slows and that the bulls may return.
For one, a bullish divergence can be seen as price has made the lows while stochastic and RSI have made the lows. These oscillators also indicate that buying the pressure could return and eventually trigger a break beyond the trend line.
However, the 100 SMA is going through under the longer-term SMA 200 to indicate that the path of least resistance is downward. This suggests that the selloff is likely to resume rather than reverse. The price may be ready to resume the fall while testing the trend line around $ 6,200 to $ 6,300 but a candle that closes above could still stimulate a reversal.
Bitcoin was on a weak footing as it failed to sustain its strong start for the quarter and collapse through the main technical levels. Negative comments and a SEC decision to delay their decision on several bitcoin ETF applications have also dampened investor sentiment.
Although there are some updates of institutional interest, these do not seem enough to overwhelm the FUD that prevails in the cryptocurrency industry. Furthermore, it does not help risk appetite to weaken due to turbulence in Turkey and fears of contagion in global financial markets.
So in the end this could prove positive for the bitcoin if the same phenomenon of the consequences of the Greek debt crisis is at stake. At that time, citizens were looking for a store of better value and a means to facilitate transactions. Investors have also moved their holdings on alternative assets such as cryptocurrencies, while dumping stocks and legal currencies that could be affected by a crisis.
For now, bitcoin is gaining some gains over the Turkish lira, although recent comments by the finance minister have led to a rebound and loosening of contagion fears for the time being.