Bitcoin (BTC) Price Analysis: Another Retracement or Reversal?

Bitcoin is still trending lower inside its descending channel that has been holding on so far this month. Price bounced off the bottom and has pulled up to the top, which is holding as resistance once more.

Should sellers return, bitcoin could find its way back down to the nearby support levels marked by the Fibonacci extension tool. The 38.2% level lines up with the swing low at the $3,200 area while the 61.8% level seems closer to the channel support at $3,100. Stronger selling pressure could take bitcoin down to the 78.6% extension at $3,060 or the full extension at $2,973.9.

The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside or that the selloff is more likely to resume than to reverse. However, price is trading above the 100 SMA dynamic inflection point to signal the presence of bullish pressure. Price could still attempt a break past the channel top and test the 200 SMA dynamic inflection point around $3,450 next.