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Bitcoin has a lower trend within a downtrend channel and seems to have already found a limit in the central channel's area of interest. If sellers return at this point, the Fib Extension Pullback tool shows the next potential downward targets.
The 100 SMA is less than 200 longer-term SMAs to confirm that the path of least resistance is downward. In other words, the selloff is likely to resume rather than the other way around. In addition, the 100 SMA has recently held the resistance on the last rebound and could continue to keep the gains under control.
From here, the bitcoin could be reduced to 38.2% of the next Fib or 50% closer to the minimum oscillating to $ 3,270. A stronger sales pressure could bring it to the 61.8% level near the bottom of the channel at $ 3,150 or the 78.6% extension at the psychological level greater than $ 3000. The full extension is found at the $ 2,731 mark.
The RSI appears to be in a downtrend to signal the presence of bearish momentum, but currently hesitates in mid-field, suggesting that there is a possibility that buyers can come back and push for a bigger pullback towards the top of the channel for $ 4,000. Stochastic is also heading south, so bitcoin could follow the example while sellers have the upper hand.
Analysts are worried that the bitcoin's inability to overcome neighboring ceilings signals that the bear market is all but over. After all sellers are accumulating at key levels and buyers are also ready to book profits, rebounding, keeping the downtrend intact.
Traders continue to resist for real developments in the sector before re-establishing any large positions. Some still believe that the increase in institutional investments is expected at the beginning of next year and may be sufficient to revive volumes and price increases. Changpeng Zhao, chief executive of the main global bitcoin and cryptocurrency Binance exchange, thinks Amazon could be the catalyst for the upcoming bull run.
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