Bitcoin Price Analysis: How Low Can the Bears Push

Bitcoin is showing bearish momentum again so let us look at the next downside targets. Bitcoin looks ready for more losses as price gained downside traction after its break below a double top neckline. Applying the Fibonacci extension tool on the latest correction shows the potential price targets.

Price is currently sitting on the 38.2% extension near the $8000 level at the moment, and a break lower could take it to the 50% extension next at $6459 next. From there, the price could drop to the 61.8% extension at $5168 than the 76.4% extension at $3610 at the channel support. The full extension is located at $1063.

Reports that Google will ban cryptocurrency ads weighed heavily on bitcoin price, as well as other altcoins, starting in June. Recall that Facebook previously took similar action, banning ads on binary options, initial coin offerings and cryptocurrencies came after FBI and  Securities Commission pressured them back in January leading to roughly a 12% drop in bitcoin price then.
There are also rumours that the Chinese government continues to crack down on crypto activity in the country.

The 100 SMA is above the longer-term 200 SMA on this time frame to indicate that the path of least resistance is to the upside. This suggests that bullish momentum is still present and that the longer-term uptrend could still resume.

However, the 100 SMA has been holding as dynamic resistance recently and bitcoin price has broken below the 200 SMA dynamic inflexion point to signal that it could also hold a ceiling from here.

Stochastic is indicating oversold conditions to show that sellers are tired, but the oscillator has yet to move higher to reflect a return to bullish pressure. RSI has some room to head south so bitcoin could still see some losses from here.