2 years ago
Bitcoin (BTC) remains successful a two-month agelong downtrend, defined by a bid of little terms highs.
The cryptocurrency was down astir 9% implicit the past week arsenic upside momentum continued to slow.
There is insignificant enactment astir $40,000, which could stabilize the existent pullback. However, upside appears constricted astir the $45,000 absorption level. This means buyers could rapidly instrumentality profits if a terms bounce occurs.
The comparative spot scale (RSI) connected the regular illustration is the astir oversold since Dec.11, albeit wrong a terms downtrend.
Over the long-term, BTC is susceptible to further selling, particularly if buyers neglect to clasp the $38,000-$40,000 enactment portion implicit the weekend. On the play chart, the RSI is not yet oversold, which suggests the downtrend remains intact.
Lower enactment is seen astir $28,000, which is adjacent the June 2021 low.
BTC is astir 2 weeks distant from registering a downside exhaustion signal, which typically precedes a countertrend terms bounce. Still, akin oversold readings connected the regular illustration person been delayed arsenic buyers stay connected the sidelines.
Damanick is simply a crypto marketplace expert astatine CoinDesk wherever helium writes the regular Market Wrap and provides method analysis. He is simply a Chartered Market Technician designation holder and subordinate of the CMT Association. Damanick is besides a portfolio manager astatine Cannon Advisors, which does not put successful integer assets. Damanick does not ain cryptocurrencies.
Subscribe to First Mover, our regular newsletter astir markets.
By signing up, you volition person emails astir CoinDesk merchandise updates, events and selling and you hold to our terms of services and privacy policy.
English (US) 