Bitcoin continues to trend lower in a descending channel on its 1-hour chart as price bounces off support to the mid-channel area of interest. The price is currently testing the 50% Fib and might resume its slide from here.
The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to gain traction than to reverse. If the current area of interest keeps gains in check, the price could resume the slide to the swing low at $9,100 or the channel bottom closer to $9,000.
RSI is heading up to show that there is some bullish pressure in play, but the oscillator is closing in on the overbought zone to signal possible exhaustion. Turning lower could mean that sellers are about to return. Stochastic is already in the overbought zone to indicate exhaustion and could also be due to move back down again from here.
A larger correction could last until the 61.8% level at the $9,814.53 level that’s closer to the top of the channel and a former support zone.
BTC/USD Chart – TradingView
Bitcoin seems to be gaining some bullish traction as buyers strongly defended the $9,100 psychological barrier. Still, there is plenty of selling pressure in play now that price has broken below the key $10,000 level.
Traders are wary of further downside momentum as US officials have turned a closer eye on cryptocurrencies, raising the odds of increased regulation. Any indication that stricter oversight might be in the works could drag bitcoin and its peers further south while a lighter stance could allow the rallies to resume.
Another factor worth watching this week is the FOMC decision as the central bank could wind up cutting interest rates by 0.25%. The NFP report might also be a big catalyst for the week as it could influence future rate expectations.
Images courtesy of TradingView
The post Bitcoin Price Analysis: BTC/USD Short-Term Channel Forming appeared first on BitcoinerX.