In the short-term time frames Bitcoin is in overbought territory. While there could still be some more upside, it looks as though the price is more likely to sell-off, allowing momentum indicators to reset. If this occurs, how far down could the $BTC price go? Has a $BTC local top just been made? Source: TradingView A 5.1% increase in the $BTC price may be the full extent of this current upside move. The faint trendline shows how the price has come back to meet it. If the price falls through, it would be imagined that the horizontal support at $112,000 will be tested at the very least. If the price bounces from here, the horizontal resistance at just under $116,000 could be a likely place for a swing high and a rejection. At the bottom of the chart, it can be seen that the Stochastic RSI indicators are topped out, while the RSI reveals bearish divergence. These are two extra reasons why a local top has probably just been made. Bulls main task is to avoid a lower low Source: TradingView The daily time frame reveals that the price stopped short of the descending trendline that started from the $124,000 all-time high. In fact, it has reversed as far as the ongoing cross-down of the 50-day SMA below the 100-day SMA. These two simple moving averages could provide support, enabling the $BTC price to perhaps reach the descending trendline, although a rejection there would then be very likely. It might be argued that the main task for the bulls from here would be to avoid a lower low below $108,700. If this does take place, the downtrend will be well-established, possibly leading to a further breakdown. $115,300 is key level Source: TradingView The weekly view for $BTC reveals that around $115,300 is the level where the bulls could turn everything around. This is horizontal resistance and coincides with the descending trendline. A hold above here at the end of the week would do wonders for bullish sentiment. At the bottom of the chart, the Stochastic RSI indicators are still posturing to cross down. As things stand, it is looking a lot more likely that a return to the $108,000 horizontal support could be the next move rather than a breakout. Things should look clearer at the end of this week. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
