Bitcoin: The sell off begins

Bitcoin price topped the 40K price level last week, and it was pretty much clear that the price is due for a correction. This is because Bitcoin's price doubled in less than two weeks. Bitcoin is consistently being associated as an asset class that institutional traders are likely to get involved with. However, the fact is that institutions want to avoid this sort of heightened volatility. Having said this, Bitcoin has been around the block for a long time now, and it has proven to the world that it has the ability to bounce back up sharply and form a new high.

The last two weeks' moves pushed the RSI in way overbought territory. However, the Bitcoin price was still possible to continue its upward momentum, but a retracement is a more welcoming news. On the 4-hour time frame, the price has already dropped below the 50-day SMA, and now it is testing the 100-day SMA.   The last time these moving averages were tested was back in December last year. The Bitcoin price experienced a sharp rally after that, and the hope is to see a similar price action once again.

In terms of support, it is near the 29K price level and the resistance is at all time high.