Bitcoin is tasting the new lows very frequently and is eventually dragging other major cryptocurrencies down. Technical analysis of Bitcoin’s four years journey indicates that the new break of $3100 if happened will bring new trouble.
Bitcoin hasn’t been this Oversold in Four Years
A technical analyst and Fundstrat Global Adviser, Rob Sluymer say that for the first time in the period of 4 years, Relative Strength Index or RSI (an indicator uses to technically analyze the upcoming move of Bitcoin) is declining below 30. The RSI tool hints reading below 30 means ‘oversold level’ and above 70 marks for ‘overbought level’. Mr.Sluymer says that;
“BTC is again at historically oversold levels and is retesting important support that needs to hold to suggest a bottom is developing,”
Sluymer further notes that;
“A successful retest of the Q4 lows developing into a double bottom price pattern remains a possibility, but the price structure for most cryptocurrencies remains weak and appears vulnerable to a pending breakdown to lower lows,”
Breaking the New Low
As reported earlier also, Sluymer’s view on Bitcoin’s break on $3100 would drive it until $2270 and if it has to hit the new beginning, it would move from $3100 to $4200. However, the price of Bitcoin is bobbing around $3400 to $3500 until today, in fact, press time recorded the value of Bitcoin is $3,405.42 which is not even closer to $4200 to hit positive move.
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Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com