Bitcoin is stalling from its drop after it broke through the bottom of the long-term symmetrical triangle on its daily time frame. The price could be due for either a correction or continuation from here.

Applying the Fibonacci retracement tool on the latest swing high and low shows that the 61.8% level is close to the broken triangle bottom around $9,350. A shallow pullback could already hit resistance at the 50% Fib or $9,022 or the 38.2% level at $8,695.

However, a break below the swing low around $7,638 could be enough to confirm that this is a bearish flag, possibly setting off a drop that’s the same height as the flag mast from $10,407. Keep in mind, however, that the 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside. In other words, there might still be some bullish momentum left in play.

RSI is also indicating oversold conditions or exhaustion among sellers. Turning back up could confirm that buyers are returning and could push for a retracement next. Similarly stochastic has been in the oversold area for quite some time and is slowly pulling up, so price might follow suit.

The breakdown in bitcoin is being blamed on the launch of bitcoin futures on Bakkt as the product was met with lackluster acceptance. Also, traders are wary of how bitcoin reacted to previous futures launches in CME and CBOE, taking the opportunity to quickly liquidate their holdings.

With that, it would now take a significant strong market catalyst to lift bitcoin back up. It doesn’t help that Facebook’s Libra is undergoing some challenges as well, with founder Mark Zuckerberg revealing that it might not be ready to launch by 2020 as expected. He explained:

“A lot of people have had questions and concerns, and we’re committed to making sure that we work through all of those before moving forward.”

Images courtesy of TradingView