Bitcoin (BTC) Price Analysis: Sharp Tumble on Goldman, ShapeShift

Bitcoin bounced off the top of its long-term wedge formation and might be due for another test of the key support zone. This resistance lines up with the top of a short-term rising wedge and the breakdown from this pattern signals a drop in the days ahead.

The 100 SMA is below the longer-term 200 SMA on the daily time frame to confirm that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. Price has also fallen back below the 100 SMA dynamic inflection point to indicate that this could hold as resistance moving forward.

RSI is on the move down, also confirming that bearish momentum is in play. This oscillator has a bit of room to slide before hitting oversold levels, which means that sellers could have the upper hand for a bit longer. Stochastic has just made its way down from the overbought region also, and this oscillator has much more room to fall from here.

Reports that Goldman Sachs is backing off its plans to…