BTC Technical Analysis...
Bitcoin (BTC) prices dropped to a 50-day low of $6,630 earlier today, but a glimmer of good news is that the cryptocurrency appears to be nearing a bottom.
To start with, BTC tends to reverse course every time the relative strength index (RSI) drops to or below 30.00, according to historical data (see chart below). As of writing, the relative strength index is close to that mark, at 32.00.
Currently, the 50-day MA is located at $9,376 and the 200-day MA is seen at $9,347. So, the death cross (bearish crossover between the 50-day MA and 200-day MA), will likely happen in the next 24-48 hours. As discussed, the crossover is a lagging indicator and tends to come before a rise if the RSI shows oversold conditions.
So, it's likely the sell-off will run out of steam in the range of $6,600-$6,000 (Feb. low).
However it's still too early to call a bull reversal, as the momentum studies are still bear biased, with the 5-day and 10-day MAs are trending south. Yesterday's close (as per UTC) below $7,240 (March 18 low) established a lower high and lower low pattern (bearish setup).
No comments:
Post a Comment