Bitcoin is resuming his slide after rebounding the resistance indicated above. The application of the Fib extension tool shows the next potential downward targets.
The price is currently testing the 61.8% extension right now, where some buyers may still try to buy on dips or defend the support areas. In this case, the bitcoin could still recover the resistance of the channel around the psychological value greater than $ 4000.
The 100 SMA is below the 200 longer-term SMA, however, so the path of least resistance is downward. In other words, the selloff is likely to resume rather than the other way around. Even the 100 SMA seems to hold a dynamic resistance and could continue to control further rallies.
The RSI is down but seems to have hit the bottom, so a move higher than the oversold region could be under way. In this case, the support zones could hold and push the bitcoin back into the upper part of the channel or perhaps even in case of interruption. A move over the swing could confirm that a reversal is underway, but the bitcoin must eliminate the dynamic resistance of 200 SMA to attract further bullish momentum.
This seems like a long interval, however, since the last collapse shows that the bulls are still cautious with their positions and they are making profits very quickly. Sales pressure is also evident and could accelerate with a break of 61.8%.
From there, bitcoin could slip to 78.6% extension next to the $ 3,600 channel fund. Increased selling pressure could bring it to its maximum extent at $ 3,400 or even lower.
A number of catalysts are blamed for the bitcoin slide but it seems that the moment is at stake for now, with the FUD feeling worsening the decline. It seems that there is no potential catalyst in view of which it could dissolve these losses, so traders could continue to unload their holdings.