Bitcoin is extending today’s sell-off and is sliding toward $66,500, which may represent a stronger support zone, matching the 2021 bull-market highs. The daily RSI has dropped to around 18, pointing to an extremely rare oversold condition. Additional fuel for a rebound could come from a 1:1 corrective move pattern.
If this scenario plays out and price consolidates in the $66,000–$70,000 area, a move back toward $75,000 over the next few weeks cannot be ruled out. That said, an additional downside impulse, similar in size to the current one, is also possible. Such a move could push Bitcoin toward $50,000, where we see important on-chain support levels, including the Delta Price. A potential reversal of the downtrend would become more likely after a breakout above $90,000 (the EMA50, marked by the orange line).
Source: xStation5
On a broader timeframe, we can see that an RSI near 18 occurred only in November 2023 and during the COVID crash in 2020.
Source: xStation5
Daily summary: Red dominates on both sides of Atlantic
Disaster for Volvo shares. Is this the end of an iconic brand?
๐จUS100 loses 2% amid US technology stocks sell-off
US OPEN: Market under pressure from lacklustre tech earnings season
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
