Since after Bitcoin got into the descending channel on the price chart, it has been going lower on the trendline. However, there is bullish pressure near the support. The bullish pressure is limiting the loses and if it continues, Bitcoin may be able to recover to $7,085 short-term.
This is in line with the 61.8% Fib level and the upper part of the descending channel. Also, the 100 simple moving average is stronger as a ceiling by lining up with the top of the channel. The 200 simple moving average is above the 100 simple moving average which indicates that there is a path to least resistance downside. So, the sell off will resume soon rather than be completely reversed.
There is a gap between both moving averages which is getting narrow signaling an upward crossover. This indicates that the bears are losing momentum and giving way for the bulls. There is also the possibility of a buying pressure.
Technical Analysis for Bitcoin
The relative strength index is moving higher which means buyers may rescue the market soon. The oscillator also has a bullish divergence which has propelled higher lows and lower lows for Bitcoin.
The Stochastic is moving out of the oversold territory and this shows that sellers have taken a break and buyers are slowly coming through. This price of Bitcoin is at its lowest point since February and facing several barriers that are pushing investors to liquidate their holdings. Shortly after the FOMC’s decision, the price of Bitcoin recovered a little even when the central bank increased rates and said they have plans for two more rate hikes next year.
Traders are still anxious about the verdict of the ongoing probe by united states regulators regarding whether or not the price of Bitcoin has been manipulated. If there is any evidence to show that the price of Bitcoin has been manipulated in the past, the industry will suffer another blow. The rumor in the industry is that the price was manipulated using Tether which caused the price hike in December 2017.