Bitcoin prices are still sitting right under all-time highs, but signs are mounting of a big impending pullback.
That’s the message from the technical analysts over at NewsBTC.com, who recently penned a piece examining the technicals of the much-vaunted cryptocurrency:
The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In addition, the 200 SMA is holding as dynamic resistance since it lines up with the 61.8% Fibonacci retracement level around $4137.
Stochastic has reached the overbought zone and is starting to turn lower to reflect a return in selling pressure. RSI has room to head north to show that bullish pressure remains but it also looks ready to head south, so bitcoin price might follow suit. In that case, a move towards the $3600 mark could take place.
What’s driving the recent consolidation pattern? Possible complications stemming from none other than the recent bitcoin code fork, despite many assuming the danger there was over:
Bitcoin price was weighed down by reports indicating that bitcoin cash has gained more mining power, which means that it is becoming a more viable rival to the core version. This could give rise to complications regarding the upgrade to SegWit and keep incompatibility concerns in play.
Still, bullish factors remain as well. Volatility has spiked in the U.S. equities markets lately, and geopolitical concerns are indeed rising. These developments tend to push investors into safehaven assets like gold, silver, and nowadays, bitcoin.
Bitcoin was trading at $4,347.04 on Monday morning, down -1.08% on the day.