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In the previous 24 hours, bears strengthened their hold on BTC price, which fell from $29,320.13 to $28,933.74. At press time, BTC was trading at $29,107.02, down 0.59% from its recent high. The multi-contact point trendline, originating from the 2023 bottom, is now under serious scrutiny as bearish momentum threatens to break through.
Bitcoin seriously challenging multi-contact point trendline from 2023 bottom. Move through Aug low would be bear signal or bear trap. $BTC pic.twitter.com/FR5eqwgJis
— Peter Brandt (@PeterLBrandt) August 16, 2023
However, there’s hope for Bitcoin enthusiasts. The $28,933.74 support level represents a crucial line of defense. If bears breach this level, the next support is around $28,800. Significantly, this level has historically acted as strong support and could attract buyers to prevent further decline.
Moreover, the market capitalization of Bitcoin has dipped by just 0.62% to $566,398,762,995 during this recession. In contrast, its 24-hour trading volume surged by 20.25% to $14,172,016,761. This indicates that there is still robust interest in BTC, even amid the bearish momentum.
BTC/USD technical Indicators
The stochastic RSI, with a reading of 19.40 and pointing downward, suggests that the bearish momentum is currently strong. Consequently, selling pressure may continue soon, pushing prices lower. However, a bullish reversal remains possible below the oversold threshold of 20.
Source-TradingView
Meanwhile, the RSI, having shifted below its signal line with a reading of 42.93, indicates that the market sentiment leans towards bearishness. Hence, a further price decline may be anticipated as the RSI has not yet reached oversold levels.
Besides these, the Chaikin Money Flow (CMF), currently at a positive reading of 0.14, suggests that there is still some buying pressure in the market. This trend could drive a bullish reversal, as the buying pressure may increase prices.
Bullish recovery or bearish breakdown?
As Bitcoin tests the waters at this critical support level, a recovery hinges on how the cryptocurrency responds. If BTC price bounces back above the $29,200 resistance level, it may signal a shift in sentiment, attracting more buyers and leading to a bullish recovery. However, we may witness further price declines if the bears breach the $28,933.74 support level.
In conclusion, while the bearish momentum poses a challenge, the potential for a bullish rebound remains. By monitoring Bitcoin’s response to the current support levels, investors can better understand the cryptocurrency’s future trajectory.
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