Bitcoin Price Technical Analysis for 07/15/2016 – Still Testing Channel Support!
Bitcoin price is testing the ascending channel on the 1-hour time frame, still deciding whether to go for a continuation or a reversal.
Bitcoin Price Key Highlights
- Bitcoin price has been edging lower recently but the overall uptrend on the short-term chart seems intact.
- Price is still inside its ascending channel and is currently testing the support.
- A bounce could confirm that bulls are still in control of bitcoin price action while a breakdown would suggest that a downtrend is in order.
Bitcoin price is testing the ascending channel on the 1-hour time frame, still deciding whether to go for a continuation or a reversal.
Technical Indicators Signals
The 100 SMA is above the 200 SMA, which means that the the path of least resistance is to the upside. In addition, the 100 SMA lines up with the channel support, adding to its strength as a floor. A larger drop could still find support at the 200 SMA, which is around the area of interest at $650.Stochastic is on its way down, which means that there’s still some selling pressure left. If bearish momentum is strong enough, bitcoin price might break below the channel support and $650 area, which would then confirm a reversal.However, if the oscillator reaches the oversold zone and turns higher before a breakdown happens, buyers could regain control and push bitcoin price back to the channel resistance around $680 or higher.
