The cryptocurrency continues moving laterally and starts a consolidation period between the support close to $28,615 and the resistance in our 23.6% Fibonacci retracement at $30,789. The crypto continues trading below the short and long-term moving averages, indicating that the downtrend is likely to continue. We expect a breakout on either side in the short term, which is likely to dictate the next trend.
The Bollinger bands are closing, which strengthens the consolidation phase, but they are still wide enough to expect high volatility. The price trades closer to the lower band, but not enough to consider the price relatively low.
Our relative strength indicator is at 35%, allowing the pair to move upwards freely in the event of a resistance breakout. Theoretically, if the RSI goes below 30%, we expect a rebound, but we've seen Bitcoin stay oversold for multiple sessions before. Our parabolic SAR indicator suggests that the price will start an upward trend soon.
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