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Bitcoin has made a triangular breakdown earlier but seems to find support in a larger triangle. The price has rebounded to the $ 3,800 area but it is doing another test and may try another pause.
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, support is more likely to stop than hold. In that case, bitcoin could flow the same height as this chart formation, which ranges from $ 3,500 to $ 4,600.
The RSI is still heading down to reflect the presence of bearish pressure. However, the oscillator approaches the oversold region to reflect the exhaustion. Turning higher could confirm that buyers are ready to come back and could push to get back to the triangle above $ 4,100. Similarly, Stochastic is plunging into the oversold region, but must still veer higher to signal a return to bullish pressure.
More and more mainstream coverage on the recent collapse of bitcoins and other cryptocurrencies is accumulating on the FUD which is currently weighing on prices. Although the improvement in sentiment from last week compared to expectations revived on institutional investment has supported the top bitcoin, it seems that traders are hoping to get real developments before holding any rally.
However, many analysts are clinging to their bullish bets and this could be the reason why the bulls continue to defend nearby support levels. Some expect bitcoin to rebound strongly before the end of 2019, while some believe it may already take place in the first quarter of 2019.
According to an A.T. recently published Kearney Report:
"By the end of 2019, Bitcoin will recover almost two-thirds of the crypto-market capitalization as altcoins lose their luster due to rising risk aversion among cryptocurrency investors." More generally, financial regulators will ease their position towards the sector. "
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