Bitcoin is resuming its slide after consolidating close to the top of the descending channel on the 1-hour time frame. Price broke below a short-term falling wedge previously highlighted, as well as the yearly lows to create new ones.
Price could be due to test the mid-channel area of interest on the descending channel around the $3,200 mark. Stronger selling pressure could take it down to the channel bottom at $2,500-2,750.
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 resume than to reverse. The moving averages are in line with the channel top around the $4,000 mark to add to its strength as resistance.
RSI is also turning higher to signal that bullish momentum is returning. In that case, the price might still make a pullback to the broken lows at $3,700 to gather more selling pressure. A break past the moving averages could indicate that a reversal from the slide is still possible. Stochastic is also dipping into the oversold region to signal that sellers are tired and that buyers could take over soon.
Bitcoin seems to be reeling from the SEC announcement to once again delay its decision on the ETF applications from VanEck and SolidX. According to the regulator, this gives them more time to take in more comments and look into whether or not there are enough consumer protection measures in place.
Still, this decision shouldn’t have come as a surprise since SEC Chairperson Clayton already mentioned in earlier remarks that they’re not likely to approve Bitcoin ETFs anytime soon.
Note, also, that their decision to postpone comes after a meeting with representatives from both companies who pointed out similarities between the commodities like gold which have their own ETFs. They even noted that Bitcoin could be less prone to market manipulation compared to these traditional assets.
Images courtesy of TradingView
