The cryptocurrency broke the $40,000 support level and fell to $39,558 in yesterday's trading session, the pair is recovering some ground and but the general downtrend continues as the price is below our short and long-term moving averages.
The Bollinger bands started to open up six days ago and the price started to fall below the lower band, suggesting that the price was relatively low, both bands are moving downwards and the price might fall a bit more in the short term before making a come back.
The relative strength index is currently at 35% after the pair recovered 2.19% today. The RSI entered an overbought status and that is one of the reasons we see a small gain today, the price might continue moving downwards as the general trend continues to be bearish. Our parabolic SAR indicator suggests that the price will continue to drop.
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