The cryptocurrency has been on a downtrend for more than four months now, the pair could go all the way down to its support level at $28,600, which is the lowest level the asset has seen since December 2020, and it was reached on June 22nd 2021.
The Bollinger bands are opening up; however, the price trades below the lower band, suggesting that the price is relatively low. At this point, it isn't very easy to make a prediction as the market for cryptocurrencies is dropping.
There is a possibility that the price would test the resistance at $28,600 as it is only a 4% fall away from it. The relative strength index is at 34%, which is very close to entering an oversold status, potentially incentivizing investors to buy a dip and drive the price up. We have seen BTCUSD staying in an oversold status for three trading sessions, but the movement that preceded maintaining an oversold status was a 14% loss in a single trading day.
Short and long-term moving averages continue moving down, strengthening the short signals. The gap between the lines is slightly expanding, and breaking the $30,000 support is not good for the crypto.
Our parabolic SAR suggests that the price will continue to fall in the short term.
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cryptocurrency, trading conditions, technical analysis, fundamental analysis