Bitcoin broke faster from its short-term consolidation, but is still in correction mode.
Bitcoin is still in a weak position, even if it has broken up a short-term consolidation model. The price is currently testing the Fibonacci retracement level of 38.2% on the 1 hour chart and this aligns with a downtrend line up until this month.
Apart from this, the resistance area coincides with the 50th SMA dynamic inflection point. The 100 SMA is still below the 200 long-term SMA to indicate that the path of least resistance is down or that the selloff is more likely to resume rather than reverse.
In addition, the gap between moving averages is slowly widening to reflect increased selling pressure. The 100 SMA is just above the highest Fib, adding an additional level of resistance in the event of a higher interruption.
RSI is heading towards the top but is plunging into overbought territory to signal the exhaustion of buyers. Turning lower could bring the sellers back and lead to a slip to the low or low swing. Similarly stochastic is moving, but may be ready to come back soon from overbought levels.
Bitcoin was raised earlier this week on the news that the South Korean exchange UPBit was canceled after investigations. This could be a positive update that the market desperately needs after having erased most of its previous gains.
Recall that institutional interest has raised prices at the beginning of July, but a large number of negative comments and an interruption of HitBTC have forced these gains to be returned. Apparently, South Korean officials are not seeking to remove tax breaks from cryptographic exchanges and possibly on transactions along the line.
Reports that Starbucks does not really accept bitcoins because coffee payments have also dragged on investor sentiment, although this came simply as a clarification from the news that it is collaborating with ICE to launch the Bakkt digital platform.