Bitcoin continued its dip as we noticed an almost equal candle to the previous intraday session. The massive decrease in price is one that many did not expect as they anticipated “moonvember.”
Fundamentals over the last two days were some of the poorest as the coin felt the impact of negative sentiments across the industry. In response, BTC is seeing massive retracements and is seeing various lows.
Yesterday it dipped to a low of $17,114. This was the lowest price for 2022. However, it has toppled this figure. As of the time of writing, the new low for 2022 is $16,446. The liquidated capital was also on almost $40 million over the last 20 hours.
Currently down by more than 9%, it rebounded from its low and is exchanging above $16,800. To get an in-depth analysis of price performance, we turn to the indicators.
Bitcoin is Oversold
The apex coin is having one of its worst performances since the beginning of the current year. The present intraday session marks the fourth consecutive day of losses. As a result, several indicators are bearish.
One such is the Relative Strength Index. The latest price movement saw the indicator dip to a low of 27. This is the first time since July that BTC is becoming oversold. The Moving Average Convergence Divergence also had a bearish divergence during the previous intraday session.
Since the beginning of the week, the apex coin is down by more than 20%. With the massive price decrease the asset is experiencing, the question on every trader’s mind is when the downtrend will come to an end.
Recall that several outlooks a few days pointed to the current situation. The article presented a pattern on the daily chart. The trend was a massive decrease after testing a vital level three times. It stated the $21k barrier was the mark to watch.
After the flip of the highlighted resistance, another analysis stated that BTC is likely to retrace as low as $16k and place the lowest between $16,000 and $14k. Currently, at $16,800, it is hard to conclude if the winter is over.
Nonetheless, RSI rules state that an oversold asset is due for an uptrend. Going by this, we may expect recovery before the week ends. It is also important to bear in mind that fundamentals could alter this prediction.
If the current bearish sentiment continues, we may see the $16k support break within the next 24 hours. Let’s see how prices will play out.
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