The cryptocurrency continues testing the support level at the 61.8% Fibonacci retracement and is unable to maintain previous gains. In the past few sessions, the support has proven to be strong as the pair has not traded below it since early December.
The Bollinger bands are narrower than we are used to, and the pair trades closer to the lower band, suggesting that the price is relatively low. Based on the technical analysis we believe that this support level will hold the drop and allow Bitcoin to recover some ground in the next few sessions.
The relative strength index is at 40% which will allow the pair to start a recovery soon if the support level is strong enough, if the pair continues falling, we would want to wait until the RSI hits an oversold status to place a long trade.
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