Bitcoin continues to edge lower and may be poised to break below this long-term area of interest. If so, it could be on track towards testing the bottom at the previous year lows again.

Price is trading inside a descending channel visible on the 4-hour time frame and might also be poised to close below the middle. This could accelerate selling pressure as Bitcoin might be pulled to the very bottom of the channel around the $3,000 major psychological mark.

The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. This suggests that the selloff is more likely to gain traction than to reverse. The 100 SMA also recently held as dynamic resistance on the latest bounce. The 200 SMA is just below the channel top of $4,000 and might serve as a ceiling in a larger pullback, too.

Stochastic is turning higher, though, so there could still be a chance for buyers to take action. A bit of bullish divergence can also be seen since the oscillator made higher lows and price had lower lows. RSI is also on the move up after hitting the oversold region, indicating that buyers are starting to return.

Bitcoin has had a rough week as it spent most of the days in the red so far. However, there could be a bit of reprieve as it was already reported by Bloomberg that Fidelity is ready to launch its institutional platform in March.

Recall that the promise of stronger institutional investments brought some relief to Bitcoin late last year as higher volumes could keep prices afloat. However, the industry saw a lot of delays and rejections in these types of services being offered and investors needed to see actual developments rather than ride on expectations.

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