BTCUSD Price Key Highlights
- BTCUSD price broke below the bearish pennant pattern visible on its 4-hour time frame, indicating that more losses are likely.
- This mirrors the previous downside break of a similar consolidation pattern, confirming that bears are still in control of the game.
BTCUSD price could be ready to test the next area of interest at the $300 handle after breaking below its pennant pattern.
BTCUSD price did show some bearish momentum but technical indicators are suggesting that the selloff might already be overdone. Stochastic just made it out of the oversold area, which hints at a pickup in buying pressure, while RSI is starting to head higher as well.
If bulls regain ground, a pullback to the broken pennant support around the $330-340 levels might be seen. For now, the 100 SMA is above the 200 SMA so the path of least resistance is still to the upside. However, the short-term moving average appears to be making an attempt at a downward crossover.
In that case, selling pressure could remain in play, pushing BTCUSD price much lower to the $240-260 area of interest earlier this year. The average directional index seems to be moving slightly higher, potentially indicating a return to trending market conditions, with the trend favoring a downward path.
Dollar strength seems to be a theme against the cryptocurrencies, although the US currency has been unable to make much headway against its other forex peers. At the same time, BTCUSD price is erasing most of the losses in the sudden rally earlier in the month since this was mostly spurred by a Russian Ponzi scheme.
Intraday support level – $300
Intraday resistance level – $340
Technical Indicators Settings:
- 100 SMA and 200 SMA
- RSI (14)
- Stochastic (8, 3, 3)
- ADX (14, 14)
Charts from Bitstamp, courtesy of TradingView