Bitcoin’s price continues to drop despite signals of oversold conditions on the technical charts for last week. It was last seen trading at $4,484. The 14% drop has pushed the 14-day relative strength index (RSI) below 10.00. The RSI for Bitcoin fell into the territory on November, a corrective bounce might be observed in the next 24 hours. Despite being oversold BTC dropped by 34% in the last five days. These market trends indicate that a recovery is difficult and the bearish sentiment will hold strong. It is advisable to exercise caution in next 24 hours.
BTC/USD and Bitfinex
The long positions hit a 3.5-month high of 31,719 earlier today. They rose over 34% in last six days. This indicates that investors are presently buying the dip.
Weekly Price Charts
A corrective bounce though likely will not survive long as the break of the seven-year-long rising trendline is set up for a drop to $4100.
The record low reading indicates scope for a minor bounce, possibly to the descending 5-day EMA, currently at $5,050. The weekly chart continues to signify a drop to the long-term rising trendline support of $4,100.
As reported by TCU today, crypto markets faced a loss of $25 billion in the past 24 hours. Crypto Rand, a popular cryptocurrency trader and analyst, predicted that the next likely range for BTC is between $4,800 to $5,200, if BTC fails to recover from the low $5,000 region to the $6,000 level.
Willy Woo, a Bitcoin researcher and the founder of Woobull.com, said “Fundamental indicators of the Bitcoin blockchain show a high probability of the negative sentiment around BTC and the rest of the crypto exchange market extending until the second quarter of 2019.”
While Bitcoin’s price continues to drop time will be the best judge. Stay tuned to TheCryptoUpdates for more such interesting news.