Bitcoin recovered from the 25-day lows over the weekend.
However, this has not yet ended the bearish trends in the market, according to technical sources.
Bitcoin Bearish Trends Continue
BTC attained a price low of $6,119 on Bitfinex on Saturday, which was the lowest ever since August 14. This only served to bolster the bearish trends that were initiated by the abrupt $1,000 price drop during the 24-hour period in the midst of last week.
This drop to 3.5-week lows, however, also pushed the RSI (Relative Strength Index) into oversold territory below a value of 30.00. Consequently, the sell-off has now stalled in the last 36 hours. RSI indicates the momentum that measures the quantum of recent changes in the price. It does this to analyze the overbought and oversold conditions. This is particularly useful for tracking such conditions in the market.
RSI values range from 0 1o 100. When RSI values increase above 70, it indicates an overbought condition. A trend reversal might then be in order. On the other hand, an RSI value below 30 indicates an oversold condition. This, once again, signals a trend reversal.
The Path Ahead for Bitcoin
Experts believe that the next major move is going to likely be on the downside. BTC is currently changing hands at about $6,290 with a 0.6 percent rise in a 24-hour basis. An examination of the chart patterns and moving averages (MAs) reveals that downside is likely.
There was a pennant breakdown on Saturday— this flags the revival of the long-term bearish trends.
Bitcoin risks a fall to $6,000 in the near-term and, as per predictions, it could venture even lower.
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