After getting rejected on the test of resistance, Bitcoin is still stuck in its triangle symmetrical consolidation pattern. The triangle is with a price of around the $3,900 mark nearing the bottom which a signal on a break lower could let the bears get the upper hand.
To suggest that the path of least intransigence is to the upside, the 100 SMA is above 200 SMA, or that support is more likely to hold than to break. At the 200 SMA, dip below the triangle bottom could still find a floor dynamic inflection point at $3,800 which might be the line in the sand for a potential bounce.
The charts formation, which spans $3,200 to around $4,400 could send the Bitcoin future price down a break below by the same height. While sellers are in control, RSI is on the move down so bitcoin might follow suit. To signal the presence of bearish momentum, Stochastic is also heading lower. Before hitting oversold levels, the oscillators have some room to cover which suggests that sellers could stay on top of the game for much longer.
As optimism may have been in play, Bitcoin was off to a good start for the year. A huge part of this was likely because of desires for institutional ventures kicking in and lifting volumes in the months ahead. Be that as it may, brokers might want to see proof of this really occurring before heaping on long positions and clutching those any longer.
For now, it looks like traders are booking profits quickly off any bounces and are still being their usual cautious selves. The presence of risk aversion for traders in financial markets are still reacting to higher US borrowing costs against the backdrop of the government shutdown and trade tensions which is also is also weighing on demand for crypto.
