After last week’s break below the prolonged sideways range, between 6100 and 6800 levels, that Bitcoin was trading in, the crypto continues its travel south in search of the next key support level. The selling momentum is still present, which means that investors are abandoning Bitcoin until it reaches an appropriate price, where the crypto could become attractive again.
As we can see from our daily chart, BTC/USD has slowed down its decline just slightly above the 4140 zone, which supported the crypto from falling further on the 5th of October last year. This zone also acted as good resistance on the 18th of September of the same year. If eventually this zone will be no match for the bears, Bitcoin could easily make its way lower to test the 3505 hurdle, marked by the low of the 22nd of September 2017. Certainly, if the selling continues, the psychological 3000 obstacle could be reached as well. But just a few dollars lower, BTC/USD might just get a touch of the 2970 level, which was the lowest point of September last year. From that level, Bitcoin made the important bounce in 2017 and the area was never tested again.
Looking at our oscillators, the RSI is now sitting below 20 (at the time of the analysis near 12), which is indicating that BTC/USD is quite oversold. But that doesn’t mean that the crypto could reverse back up straight away. It could stay in that territory for a while. The MACD is also in support of the downside scenario, as the indicator has dropped below zero and its trigger line.
In order to start examining higher levels in the long run, we would need to see Bitcoin moving all the way back above the 6100 barrier. For those, who are more on the conservative side, could wait until BTC/USD gets above the 6800 hurdle, which was the upper side of the above-mentioned range. This way the crypto could clear the path towards levels like 7400, or even higher to the 8450-dollar tag, which was the peak of July.
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