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Bitcoin price analysis (BTC): new bearish channel forming

Bitcoin is starting to fall in line with last week's selloff, creating a downtrend channel with the lowest highs and lowest lows in 4 hours. The price drops to the middle channel range after rebounding the resistance recently.

A break below this short-term plan could push a slide to the bottom of the channel, at the psychological level greater than $ 3.00. The low swing at the $ 3200 level could also attract some buyers.

The 100 SMAs are still above the 200 long-term SMA per hour to indicate that the path of least resistance is on the upside. In other words, there is still a chance of support to maintain and stimulate a rebound to the $ 4000 grip.

However, the gap between the indicators is narrowing to signal a weakening of the bullish momentum. A bearish crossover could encourage sellers to accumulate and carry on with the slide. The price also moves below both moving averages to signal the presence of downward pressure.

RSI is already in the oversold region and has been hanging around for a while, indicating that sellers feel exhausted. A return in the bullish momentum could be confirmed if the oscillator climbs out of the oversold region. The Stochastic is aiming down again, but it is also hovering in the oversold region.

The optimism at the start of the year seems to have faded when the bitcoin failed to break higher than the triangle and the reverse of the head and shoulder chart patterns. This suggests that for the moment there is still a lot of uncertainty about the sector.

The interruption has also cast doubt on the bullish forecasts and whether this constitutes a short-term retreat or not. The break of the $ 4000 level has been particularly crucial and all eyes are on the $ 3,600 barrier.

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