Bitcoin is still in the middle of a pullback to the broken triangle support on its daily time frame, and the price could set its sights on the Fibonacci extension levels next if resistance keeps holding.
The price is already down to the 38.2% level around $9,100 but might still have enough downside momentum to head to the next support at the 50% level or $8,661. Stronger selling pressure could take it to the 61.8% level at $8,214 or the 78.6% extension that lines up with the swing low. The full extension is located at $6,768.40.
The 100 SMA has crossed below the longer-term 200 SMA to confirm that the path of least resistance is to the downside or that resistance is more likely to hold than to break. However, price is still trading above the moving averages to hint that there is a bit of bullish pressure left.
RSI is turning lower from the overbought region to indicate that selling pressure is returning. Stochastic has some room to climb before reflecting overbought conditions but already seems to be topping out to show exhaustion among buyers.
BTC/USD Chart – TradingView
Bitcoin is struggling to keep up the positive momentum from its earlier pop higher, even as it remains poised to chalk up its first monthly gain since June. Profit-taking is eyed before October comes to a close, so this could mean a short-term retracement or a drop to the longer-term support areas, depending on how volume turns out.
Still, there are some noteworthy updates that could keep bitcoin’s price afloat, including the approval of “the first regulated, major exchange-listed” bitcoin fund in the world on the Ontario Stock Exchange later this quarter. CEO Fred Pye said in a statement:
“We have addressed the questions of pricing, custody, audit, and public interest issues in a regulated investment fund. We intend to refile the prospectus as soon as possible.”
Meanwhile, bitcoin reached $1 billion in cumulative transaction fees, marking a significant milestone for the cryptocurrency in terms of usage.
Images courtesy of TradingView
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