As a result of the dominant macroeconomic reasons, attempts by Bitcoin (BTC) to rise beyond the important $20,000 psychological level have failed. Technical research predicts a bleak future for the leading cryptocurrency as a result.
After experiencing brief price increases that sent it above $25,000, Bitcoin has mostly been trading around the $20,000 mark for several weeks. Some observers claim that Bitcoin may have reached its bottom in light of the price movement.
Bitcoin Price Analysis
When the technical analysis is broken down, it can be seen that oscillators are neutral at nine and indicate selling at two. Technical indicators suggest a heavy sell at 14 based on the moving average, while only one indicates neutrality.
Overall, the study shows that Bitcoin is oversold as the market searches for the prospect of a rally.
This occurs at a time when Bitcoin is still trading below its 200-week moving average, a statistic that historically has provided information about the stage of the top crypto market cycle that the asset is in. Since about two months ago, the asset has been trading in the zone.
It is important to remember that on September 2 after a solid U.S. jobs report, Bitcoin briefly rose beyond $20,000. The asset gave the overall market a brief boost, allowing it to recapture the $1 trillion capitalization. But as of press time, Bitcoin had corrected and was trading at $19,800, down about 2% over the previous day.
Analyst PlanB indicated that the monthly Relative Strength Index (RSI) reading of 42.2 for Bitcoin could indicate that the commodity is prepared for another rally based on previous trading patterns.
“Bitcoin RSI 42.2. If history is any guide, RSI could be 90+ in 1-3yrs time, unless you think history says nothing about the future and this time is different. Your choice.”