The value of Bitcoin (BTC) broke beneath it triangle pattern, however, the digital currency looks ready for a pullback before it continues its downward movement. The digital currency just found a bit of support, so the pullback might start from this point.
Bitcoin (BTC) Price Today – BTC / USD
At the time of writing, Bitcoin (BTC) is trading at $6,325 after a decrease of more than 2.5 percent over the past twenty-four hours. The current market cap of the digital currency is $108.92 billion and its trading volume over the past twenty-four hours is $3.66 billion.
Bitcoin (BTC) Technical Analysis
The 100 simple moving average is well above the longer-term 200 simple moving average to signal that the path of least resistance is heading north. This means there is still a chance of the digital currency to resume its upward movement and move back into the triangle pattern.
Nevertheless, the 200 simple moving average coincides with the 38.2 percent Fibonacci retracement level at the $6,360 mark to add to the strength as a hurdle and the 100 simple moving average line up with the 61.8 percent Fibonacci retracement level at the $6,436 level.
This is also close to the support of the broken triangle, which might serve as a hurdle from here. A move over this mark could lead to another test of the hurdle at the swing high.
Relative Strength Index
The relative strength index is already in the oversold zone and it is gradually moving upwards to indicate the return of buyers while sellers take a break. The oscillator is also moving upwards to signal a return in bullish momentum.
The digital currency recently declined below its support at the $6,400 mark, which is now its immediate resistance on the upside. Nevertheless, the digital currency to needs to surge over the $6,400 mark in order to prevent further losses in the short-term.