The cryptocurrency sank to $17,592 after a 12-day losing streak, the pair found some traction and was able to recover more than 8% after; however, the asset is back on the downtrend after finding strong resistance close to the 161.8% Fibonacci retracement. We expect to see the pair continue the downwards trend in the upcoming sessions
The Bollinger bands are wide which will allow high volatility to continue in the short term, the bands are moving downwards, suggesting that the price is likely to continue the downtrend. The pair is currently trading above the lower band which could act as a support level close to the $17,350 level.
The relative strength index is at 29% which could potentially stop further losses, Bitcoin has stayed oversold for ten trading sessions now, but its gaining strength and is now just shy of exiting the oversold status, meaning that a slight recovery is likely to occur. Our parabolic SAR indicator suggests that the price will continue the downtrend.
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