It’s not uncommon for altcoins to enter the oversold region after long-term bearish pressure. However, BTC isn’t known for trading in the oversold region from long-term indicators. According to the price analysis of Omkar Godbole on CoinDesk, Bitcoin (BTC), the largest cryptocurrency per market capitalization, is now oversold on a weekly basis. The relative strength index is holding a position below 30. This is a clear indication of being oversold. The analysis show that the cryptocurrency recorded heavy selling pressure above $6200 but the sellers became exhausted at $3.179. It is no wonder BTC was able to hold its support above this level.
Many analysts have said that the fact that the relative strength index is below 30 means that a bull run might be on the way. While this is possible, it’s not necessarily true. This is because the bearish trend in the market is so strong that the price might continue to decline whether the relative strength index stays oversold or overbought.
BTC Records High Volumes Amid Bear Market
Even if the price of BTC has been struggling in a descending channel for a long time now, it is important to note that the trading volume is still relatively high. This means that the chances of a strong long-term recovery happening anytime soon are slim. In fact, this may be the new range for BTC.
Bitcoin (BTC) Price Today – BTC / USD
In January, just after the bear market kicked off, the relative strength index fell below 53. This was a clear signal that the bears had taken over the market. Right now, it has fallen below 30 and is holding this level. The last time the relative strength index of Bitcoin fell below 30 was in the year 2015. However, it did not stay in the oversold region for long as the bulls quickly took control of the market.
Short-term, the cryptocurrency is still bearish. BTC is trading below a descending trendline. Yesterday, Bitcoin failed to break through the diagonal resistance and this added bearish pressure to the market short-term. The 5 and 10-day moving averages are moving south to show that the bears still have control.
Within the next two days, if a recovery isn’t attempted, the price of BTC will fall below the 200-week moving average which is $3,179. Nothing is set in stone. This support might hold its ground because the 14-week relative strength index is oversold. If BTC breaks below $3,179, it will fall below $2,972. The last time it was this low was in September 2017.
The only thing that can weaken the bullish pressure right now is a high volume move above the descending trendline. However, before a reversal can be confirmed, the coin must move above the November 29 high of $4,400.
Bitcoin (BTC) Price Analysis Now
At the rime of writing, BTC was trading at $3,413.47. This shows that it is down by 3.88% against the USD. The 24 hour trading volume is $4,805,005,792 and the market capitalization is $59,454,254,323. The next few days of trading will determine whether it will fall below the significant support or trend above the significant resistance.