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Bitcoin is still tending downward within a downtrend channel on the 1 hour chart, but is currently testing the resistance to attempt another interruption. However this aligns with an area of interest or a previous support that could now support the ceiling.
This level occurs in line with the Fibonacci 50% retracement level of around $ 3,600, so there may be some sales pressure at this level. A break above it could also hit a roadblock at the Fibonacci retracement level of 61.8% or at the $ 3,700 area. This also happens in coincidence with the 200 SMA dynamic inflection point.
The 100 SMA is less than the 200 SMA in the longer term to indicate that the path of least resistance is downward. In other words, the downward trend is more likely to resume rather than reverse. Then again, the gap between the two moving averages is shrinking to reflect slower sales pressure and suggest a potential bullish crossover. In addition, the bitcoin has risen above the 100 SMA dynamic inflection point to signal that the bullish moment is increasing.
RSI has reached the overbought zone and started to turn lower, indicating a recovery in terms of sales. Stochastic also heads south to indicate that bears have the upper hand and could push the price down to the low swing in the $ 3,225 area or to the bottom of the channel closer to $ 3,000.
The downside, a strong recovery among buyers could push a high upward movement around $ 4,050 and a break above this could confirm that a reversal from the downtrend is underway.
Bitcoin has had a lot to deal with in recent weeks while trying to shake off the FUD that is currently weighing on prices. Even though the recent race was positive, the bulls were quick to book profits rebounded for fear of another lower price ride.
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