Bitcoin (BTC) Price Watch: Bears Defend Channel Resistance

Bitcoin Price Key Highlights

  • Bitcoin price continues to trend lower as it bounced off the top of the channel on the 1-hour time frame.
  • A continuation of the slide could take it down to the Fibonacci extension levels.
  • There are some signs of bearish exhaustion from technical indicators, though.

Bitcoin price looks ready to resume the drop after bouncing off resistance, but there are signs of bearish exhaustion.

Technical Indicators Signals

The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. This suggests that the selloff is more likely to resume than to reverse. The 200 SMA recently held as dynamic resistance since it lined up with the top of the channel near $7,600.

A continuation of the drop could send bitcoin price to the 38.2% extension near the swing low of $6,950. Stronger selling pressure could take it to the channel support at $6,750 or the 78.6% extension close to the $6,300 support. The full extension is located near $6,000.

RSI is pulling up from oversold conditions to show that buyers are getting the upper hand. Similarly, stochastic is heading north from oversold levels so bitcoin price could follow suit. In that case, there’s still a chance for an upside break of the channel top, especially since the gap between the moving averages is narrowing.

BTCUSD Chart from TradingView

Market Factors

Bitcoin price took another hit from negative remarks in the absence of any other industry updates. Nobel Prize-winning economist Robert Shiller remarked that bitcoin could be extinct by 2118, citing:

“The one scenario is that something like what happened after 2013 when bitcoin topped $1,000, and then lost 80 percent of its value. It looked like bitcoin was just fading away.”

He did mention that it could continue to exist but maybe under a different name or mechanism as there have been so many forks already. Also, Ripple CEO Brad Garlinghouse mentioned that bitcoin price influence over other altcoins could be over soon.

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