Bitcoin is Expected to Keep Falling
As of today, the price of bitcoin is still below $ 40,000.
Bitcoin has dropped about 37% from the beginning of the month to the present. And after a series of sharp drawdowns, the rate will hardly rise to the previous level until Monday.
The Relative Strength Index (RSI) on the daily chart was oversold last week as price held support near $ 30,000. But on the weekly chart, the RSI is not oversold yet. The upside potential of the price should probably remain at the level of up to $ 40,000.
Additionally, Bitcoin is below the 100-day and 200-day moving averages. The corrective phase that started earlier this month appears to continue.
On intraday charts, Bitcoin was unable to hold support. Further declines could attract short-term buyers, stabilizing the current downturn.
Justin Chuh, senior trader at Wave Financial, wrote in an email to CoinDesk that BTC may remain volatile for a while. For Bitcoin not to fall lower, the support must remain above $ 30,000.