Bitcoin is trending lower after bouncing off an area of interest around $13,000. Using the Fibonacci extension tool shows how low price could go from here.

Price is already testing the 38.2% extension at $10,242 but could still head further south to the 50% extension at $9,317.36. Stronger bearish momentum could take bitcoin down to the 61.8% extension at $8,391.90 then to the 76.4% extension at $7,246.84. The full extension is located at $5,395.92.

The 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside. This signals that the selloff could resume instead of reversing. In addition, the moving averages are close to the area of interest, adding to its strength as a ceiling.

RSI is heading down to indicate that bearish pressure could stay in play for a bit longer. On the other hand, stochastic is pulling up from oversold levels to signal a pickup in buying momentum that might even lead to another test of the area of interest.

Dollar demand ticked higher after the US government ended its shutdown, resulting to gains in equities and bond yields as well. This drew more funds away from the cryptocurrency industry as bitcoin and its other peers remain under pressure. Analysts have remarked that liquidation of holdings in cryptocurrencies have led funds to flow back to more traditional markets like stocks and commodities which are faring well so far this year.

Meanwhile, altcoins are struggling to stay afloat as South Korea took more measures to remove anonymity in bitcoin transactions. Accounts with banks need to have real names in their bitcoin transactions starting January 30, leading some investors to liquidate their holdings right away.

Besides, traders are still holding out for a catalyst that could revive gains in the entire market, and there have been none so far. The selloff has been persistent and drawing more selling pressure while it lasts.