Bitcoin continues to be wanting south, having hit four-month lows in the present day, however the bearish momentum might wane resulting from short-term oversold circumstances, the technical charts point out.
Extra bears joined the celebration within the U.S. session Tuesday after the cryptocurrency did not cross twin resistance at $6,859 (50-hour shifting common (MA) and 23.6 p.c Fibonacci retracement). In consequence, the worth fell to $6,370 on Bitfinex in the present day, the bottom degree since Feb. 6. At press time, bitcoin was barely greater at $6,453.
The drop to the four-month low has bolstered the already bearish technical setup and raised the chances of a sell-off to $6,000 (February low).
Nevertheless, the bears might take a breather over the subsequent day or two, because the relative power index (RSI) is hovering on the key bullish reversal zone, and bitcoin might maintain round help at $6,400 or probably see a minor corrective rally.
Each day chart
Presently, the RSI is holding beneath 30.00. Historic information reveals BTC levels a “V”-shaped restoration each time the RSI drops to or beneath 30.00. Nevertheless, issues might pan out in another way this time, as long-term technical charts are biased to the bears.
The draw back break of the pennant (bearish continuation sample) signifies scope for a drop beneath the February low of $6,000.
Additional, on the weekly chart, the RSI fell beneath key help of 53.00 in February, signaling a long-term bullish-to-bearish pattern change and is at present hovering beneath 50.00 (nonetheless in bearish territory). Clearly, the bears now have extra say in figuring out the BTC/USD alternate price.
So, whereas the cryptocurrency might make a quick rally, courtesy of the oversold circumstances, a serious restoration will doubtless stay elusive.
- Long term, BTC continues to be eyeing a drop to $6,00Zero amid a usually bearish market.
- Within the subsequent 48 hours, bearish momentum might weaken and costs might revisit the 5-day MA, at present positioned at $6,800.
- The likelihood of a serious “V-shaped” restoration is low.
- Solely a each day shut above 10-day MA, at present seen at $7,214, would sign bearish invalidation.
Bitcoin on chart picture through Shutterstock