Bitcoin Price Analysis: BTC finds resistance at a key level and could move lower
- Bitcoin trades just above flat in a lacklustre session on Tuesday.
- The market found resistance at the 50% Fibonacci zone.
BTC/USD daily chart
Today bitcoin is trading just above flat as the bulls manage to stem the losses seen on Monday's session. Now the chart structure looks pretty bearish as the market has made a lower high but the orange support zone close to the 38.2% Fib zone would need to be broken to complete the bearish picture. If broken that would make a lower high lower low wave pattern.
Looking at the indicators now, the price is now under bother the 55 and 200 daily moving averages. The 55 exponential moving average was an important resistance zone which influenced with the 50% Fib retracement zone marked by the red circle.
The relative strength index indicator has also just moved into negative territory under the 50 mid-line. There is still plenty of room to move lower into the oversold zone, this could mean there is more bearishness on the cards.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
