Bitcoin previously consolidated inside a symmetrical triangle to pause from its selloff, but it looks like bears are still in control. Price broke below the triangle bottom at $4,000 major psychological level to signal that another slide is in the works.
The 100 SMA is starting to cross below the longer-term 200 SMA as additional confirmation of bearish pressure. However, RSI seems ready to climb out of the oversold region to indicate that buyers might take over while sellers take a break. Similarly stochastic is moving north so bitcoin could follow suit.
Bitcoin is also trending inside a small descending channel and is bouncing off the bottom. A pullback to the top might be due before sellers return again. This lines up with the broken triangle support that might now hold as resistance and also the moving averages dynamic inflection points.
Bitcoin has given way to FUD once more as last week’s updates didn’t seem enough to sustain any recoveries. As it is, more and more media outlets continue to cover the bloodbath and are likely convincing more holders to liquidate. Recall that revived focus on institutional investments allowed bitcoin to pause from its selloff and many hoped that it could be followed by an even larger bounce.
Traders might have been able to digest the latest SEC commentary on how the lack of consumer protection measures in the crypto market means that they’re not likely to approve any bitcoin ETF applications anytime soon. This puts the industry a huge step back as it would mean other altcoins would have to wait much longer.
Bulls are also likely holding out for bigger developments instead of mere speculations. For now, it looks like the slide could carry on until actual evidence of a pickup in volumes from institutional investors early next year are seen.
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