Bitcoin has been on a downtrend for more than five days. The latest dip saw the apex coin lose more than 7% in less than 22 hours. The dip which was a result of Luna Foundation selling off $1.5 billion BTC.
The constant retracement during this period has resulted in the largest cryptocurrency by market cap dipping $31,000. Not only was prices affected by the most recent state of the market, some indicators also expressed the condition of the market.
Bitcoin is Oversold
The Relative Strength Index (RSI) suggests that the apex coin is oversold as it the indicator is below 30, at 25.7. The Moving Average Convergence Divergence (MACD) has experienced further dips, both EMAs are below -1000.
A drop as low as this is no surprise as a previous analysis warned of impending retracement. The analysis drew parallels between last year’s May and the current situation in the market.
it stated that the $34k support broke at the time due to intense selling pressure and the same may happen again. It also postulated the said mark may break as a result of a consistent selloffs.
The analysis ended with a prediction that the highlighted level may flip in two days. True to these statements, the $34,ooo support as broken and is showing no signs of recovering the level back.
The question on every traders’ mind is when will the dip halt? It remains to be seen. However, there is good news. Being oversold, we may expect a buyback within the next seven days. Failure to stop the downtrend will result in a retest of the $30k support.
