Bitcoin (BTCB) price movement indicates that the digital token formed a bullish divergence via the 1-hour chart and is on course for a second test of the long-term resistance in an attempt to break upwards. The crypto token may have to deal with the adjacent inflexion regions and Fibonacci retracement levels to rally upwards. Bitcoin (BTC) could also attempt another break at a downward pattern should it manage to move past the adjacent inflexion regions.
What Do Bitcoin’s (BTC) Technical Indicators Suggest?
The technical Indicators suggest that the 100 SMA is below the long-term 200 SMA which shows that the way of the previous resistance is via the downside. Hence, the downward shift is more likely to continue than to reverse. Bitcoin’s (BTC) price has slightly shifted above the 100 SMA inflexion region which is an early indication of bullish momentum. Prices could test the resistance of the 200 SMA and the pattern up with the top trend via the 4-hour chart and the 61 percent Fibonacci retracement level.
Bitcoin (BTC) Price Today / USD
RSI fought of a bullish divergence as prices reached lower lows although the oscillator went on to have higher lows. RSI now appears to be pointing lower without hitting any overbought levels which hints that sellers are now eager to return to the scene. Stochastic is on a downturn which indicates a break in selling pressure. Hence, Bitcoin (BTC) could still resume the selloff to the mid-range support at 5,400 USD according to cryptocurrency writer Sarah Jenn. A break over 6,500 USD, on the other hand, may trigger a reversal.
BTC/USD Pair Chart
Many experts are of the opinion that the bounce was as a result of the release of 250 million Tether tokens. Tether is a stable coin that influenced Bitcoin’s (BTC) price in 2017. However, Japan is stepping up regarding overseeing Bitcoin (BTC) exchanges which is why investors should stay cautious.