The value of Bitcoin (BTC) recently broke beneath a rising wedge pattern to indicate that further declines are in the way. The value of the digital currency made a downward break towards the U.S dollar, but it might correct higher again before heading further down.
Bitcoin (BTC) Price Today – BTC / USD
At the time of writing, Bitcoin (BTC) is valued at $6,294 after a decrease of about three percent over the past twenty-four hours. The current market cap of the digital currency is $108.72 billion and its trading volume over the past twenty-four hours is $3.94 billion.
Bitcoin (BTC) Technical Analysis
The 100-hourly simple moving average is still over the longer-term 200-hourly simple moving average to signal that the path of least resistance is still heading north. This means that the upward trend is more likely to resume. Nevertheless, the distance between the simple moving averages is closing down to indicate weaker bullish traction and a possible downward crossover.
The value of the digital currency also tumbled beneath the SMAs, hence these might serve as dynamic resistance on the upside. The relative strength index is also heading north after dipping into the oversold zone recently, and this indicates a possible return in bullish momentum.
The stochastic oscillator also looks set to bounce off the oversold zone and the value of Bitcoin (BTC) could follow suit. Nevertheless, the value of the coin could encounter some hurdles at the Fibonacci retracement level marked on the breakdown.
The 61.8 percent Fibonacci retracement level coincides with the broken wedge support close to the $6,430 mark and the 50 percent Fibonacci retracement level coincides with the 200 simple moving average dynamic.
The U.S Imposes New Tariffs on China
The financial markets might see a wave of risk aversion as a result of the new set of tariffs imposed on China by the U.S. These tariffs – scheduled to take effect on the 24th of September – levy 10 percent of duties on Chinese goods worth $200, and the rate would be increased to 25 percent by the end of 2018.
As a result of this, traders are dumping their riskier holdings and returning to their safe-havens. This has caused digital currencies to dip, with Ethereum (ETH) taking the lead.