Bitcoin (BTC) Price Analysis: Bears Wrestle for Control

Bitcoin (BTC) Price Analysis: Bears Wrestle for Control 13

Bitcoin is trending lower inside a descending channel and appears to have already found a ceiling at the mid-channel area of interest. If sellers return at this point, the Fib extension tool on the pullback shows the next potential downside targets.

The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. In addition, the 100 SMA recently held as resistance on the latest bounce and might continue to keep gains in check.

From here, bitcoin could slump back to the 38.2% Fib next or the 50% level closer to the swing low at $3,270. Stronger selling pressure could take it to the 61.8% level near the channel bottom at $3,150 or the 78.6% extension at the $3,000 major psychological level. The full extension is located at the $2,731 mark.

RSI appears to be heading lower to signal the presence of bearish momentum but is currently hesitating at middle ground, suggesting that there’s a chance buyers could return and push for a larger pullback to the channel top at $4,000. Stochastic is heading south also, so bitcoin might follow suit while sellers have the upper hand.

Bitcoin (BTC) Price Analysis: Bears Wrestle for Control 14

Analysts are worried that the inability of bitcoin to bust through nearby ceilings signals that the bear market is far from over. After all sellers are piling on at key levels and buyers are also quick to book profits off bounces, keeping the downtrend intact.

Traders continue to hold out for actual developments in the industry before reestablishing any large positions. Some still believe that a surge in institutional investment is due early next year and might be enough to revive volumes and price gains. Changpeng Zhao, chief executive of major global bitcoin and cryptocurrency exchange Binance, thinks Amazon could be the catalyst for the next bull run.