Bitcoin could be due for a slide from its earlier rally as it formed a double top pattern on its 4-hour time frame. The price looks ready to test the neckline soon, and a break below support could set off a drop that’s the same height as the formation.
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the uptrend is still more likely to gain traction than to reverse. However, the price has already fallen below both moving averages to signal a possible return in selling pressure.
A break below the neckline around $9,750 could lead to a drop of around $4,000. However, RSI is already in the oversold region to signal that sellers are exhausted and that buyers could take over soon. Stochastic is also in the oversold region to show that bearish momentum is fading and that bullish pressure might return.
BTC/USD Chart – TradingViewBitcoin seems to have taken the Fed criticism quite hard, and it didn’t help that Trump also had some negative things to say. He said:
“I am not a fan of BITCOIN and other cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated crypto-assets can facilitate unlawful behavior, including drug trade and other illegal activity.”
Trump also took jabs on Facebook’s Libra, leading many to speculate that the administration could place more restrictions on this offering and possibly even the whole industry. Note that this comes after comments from Fed head Powell:
“Libra raises many serious concerns regarding privacy, money laundering, consumer protection, and financial stability.”
More recently, Binance CEO CZ warned:
“We have not seen institutions growing faster. What we’ve seen is a pickup in both places. The number of institutions coming into this industry has not increased that tremendously in 2019 yet.”
Images courtesy of TradingView
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