Bitcoin keeps attempting to pull up higher but the mid-channel area of interest is holding as a strong roadblock. With that, the price might still be eyeing the Fib extension tool levels as the next downside targets in the days ahead.
The 100 SMA remains below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. The gap between the two has narrowed to signal weakening selling pressure, but it seems that the attempt at a bullish crossover has failed. This could spur renewed bearish momentum that might take bitcoin further south.
Price seems to be bouncing off the 38.2% extension around $3,450 but might still head lower to the 50% extension near the swing low. Stronger selling pressure could drag bitcoin to the 61.8% Fib closer to the very bottom of the channel at $3,375 or the 78.6% extension below it at $3,320. The full extension is located at $3,248 and is near the previous year lows.
Stochastic has some room to head up before indicating overbought conditions or exhaustion among buyers, but the oscillator looks ready to turn lower. In that case, Bitcoin could follow suit and resume the slide to the downside targets.
RSI, on the other hand, has more room to climb and seems intent to move north and keep bullish pressure in play. In that case, a larger pullback to the top of the channel closer to $3,600-3,650 could take place. Price would need to rally past the moving averages dynamic inflection points to do so.
Bitcoin remains under pressure as bulls seem unable to sustain any rallies while traders hold out for actual developments. News that Fidelity will be ready to launch its institutional platform by March is keeping expectations of stronger volumes in play, but any delays could lead to another wave lower for bitcoin.
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