Bitcoin Price Analysis: BTC/USD Next Downside Targets?

Bitcoin continues to tread lower inside its descending channel on the 1-hour time frame as its mid-channel area of interest is holding as resistance. The price might be setting its sights on the next downside targets marked by the Fib extension tool.

The 50% extension seems to be holding as support so far as this lines up with the swing low. Stronger bearish pressure could take bitcoin down to the channel bottom closer to the 61.8% Fib extension at $8,500 or the 78.6% level at $8,400. The full extension is located at $8,273.67.

The 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside or that the selloff is more likely to gain traction than to reverse. The faster-moving MA lines up with the mid-channel area of interest and has been holding as dynamic resistance while the 200 SMA is closer to the channel top.

RSI is pointing down to indicate that selling pressure is in play, but the oscillator is edging close to the oversold region to reflect exhaustion. Stochastic is also pointing down to indicate that bearish momentum might be picking up enough to take bitcoin much further south. A break below the channel bottom and Fibs could spur a steeper decline.

Bitcoin traders seem exasperated by the lack of catalysts or momentum these days, likely booking profits slowly off their earlier positions. Traders might also be starting to cash in ahead of the Thanksgiving holidays or perhaps even the end of the year.

There is some unease when it comes to potentially stricter regulation as US officials haven’t been so welcoming to cryptocurrency developments, at least based on the Congress hearings on Facebook’s Libra. Meanwhile, a more positive tone in China when it comes to blockchain and bitcoin rewards could still open up a larger market for altcoins.