The cryptocurrency is struggling to break the resistance level at $38,547 after sinking to $37,400 in the previous trading session, its lowest level since March 7th. The gap between the short and long-term moving averages continues expanding, strengthening the short signals.
The Bollinger bands are somewhat narrow but we can see the edges opening up, which usually indicates a trend change and will likely bring higher volatility to BTCUSD. The pair traded below the lower band, suggesting that the price was relatively low, which pushed the price upwards as investors are entering the market at a low price, so far sellers are winning the battle.
The relative strength index is at 41%, this will allow the pair to move upwards freely, but we could still see the pair fall a few more points before it enters the oversold status and starts recovering. Our parabolic SAR indicator suggests that the pair will continue moving downwards in the short term. The next support level sits at $37,400.
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