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Bitcoin could be in for further declines while hovering at the bottom of the descending channel on the 4-hour chart. A bigger bounce could still bring it up to neighboring Fib levels.
However, the 100 SMA has recently passed the 200 long-term SMA to confirm that the path of least resistance is downward. In other words, the selloff is more likely to gain traction rather than reverse. A break under the low swing could trigger a steeper slide.
Moving averages are also close to the Fibonacci retracement level of 38.2% in the central channel's area of interest. This suggests that the upside could be limited, especially since there are more resistance levels above it. The 50% level is around $ 3,900 while the 61.8% level is near the top of the channel.
The RSI is lowering lower to confirm that downward pressure is at stake. The oscillator has a ground to go before hitting the oversold region, which means the sales impulse could stay a little longer. Even the Stochastic is moving south, so the price could follow the example while the bears have the upper hand. Pay attention to a break under the low swing to see if there are still declines in progress.
Bitcoin has struggled to maintain a positive start at the start of the year, as traders appear to be disappointed with the lack of concrete developments that could support the rallies. It should be noted that most optimism derives from the expectations of greater institutional investment in space, but more than this must be seen or at least covered by securities to raise prices.
Furthermore, much of the focus has been on the delayed update of Ethereum, which is once again raising more uncertainty in the sector. In the absence of an important positive development, consolidation or further decreases seem likely.
