Bitcoin (BTC) Price Watch: Line in the Sand for Buyers?

Bitcoin Price Key Highlights

  • Bitcoin price is back down to the bottom of its short-term ascending channel.
  • This coincides with the support of a long-term triangle consolidation pattern, so there may be plenty of buy orders here.
  • But if price falls through, it could be indicative of sellers gaining the upper hand in the longer-run.

Bitcoin price is back to the bottom of its rising channel and longer-term triangle, waiting for bulls to spur another bounce.

Technical Indicators Signals

The 100 SMA is still above the longer-term 200 SMA on the 1-hour time frame to indicate that the path of least resistance is to the upside. This suggests that the uptrend could still resume from here, although bitcoin price is below these dynamic inflection points to reflect increased selling pressure.

With that, support might be more likely to break than to hold, In that case, bitcoin price could fall by the same height as the longer-term triangle formation. A bounce, on the other hand, could lead to another test of the channel top or at least the triangle resistance at the mid-channel area of interest.

Stochastic is pointing down to also suggest that sellers have the upper hand. However, this oscillator is nearing oversold conditions to signal exhaustion among bears. Turning back up could lead to a return in bullish momentum. RSI is also moving south so bitcoin price might follow suit while sellers are in control.

BTCUSD Chart from TradingView

Reports that the only bitcoin investment trust has been in the red likely led to weaker sentiment among investors. After all, Grayscale Bitcoin Investment Trust is at its lowest point since the digital asset hit record highs last year.

Still, investors remain hopeful that bitcoin adoption could kick into high gear, owing to developments in the Lightning Network. This makes a layer on top of the blockchain, where smaller transactions can be passed back and forth before being added to the underlying one.

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