The leading cryptocurrency Bitcoin (BTC) tumbled to a new 15-month lows, effectively putting off hopes of a rally which was earlier signaled by extreme oversold conditions. Market statistics shows that the leading cryptocurrency by market cap fell to $3,200, its lowest level since September 2017.
A look at the recent happenings in the market showed that BTC was trapped in a five-day-long price range, showing multiple signs that price may rally to the crucial resistance at $3,633.
These bullish predictions were based largely on extreme oversold conditions that were printed by the 14-week relative strength index (RSI). More so, Bitcoin has in the last four weeks engineered a 49 percent price drop.
Further evidence to back the bullish prediction was indicated by a three-day inverted hammer candle formed on the BTC chart.
But while many expected the price of bitcoin to rally, the leading crypto asset dived out of the narrowing price range yesterday, effectively putting an end to a short-term reversal that was expected to see price rally above $3,633.
According to experts, Bitcoin’s failure to produce a remarkable price bounce despite extreme oversold conditions shows that the bearish sentiment is still very strong. Consequently, price may be looking to break below the 200-week moving average(MA) support of $3,170.
As at the time of putting together this report, Bitcoin is trading at $3,213, representing a 3 percent drop in the last 24 hours.
4-hour chart
Photo Credit: Coindesk
A look at the four hour BTC chart above shows a symmetrical triangle breakdown which indicates a resumption of sell-off from the high of $4,410 printed on November 29. Again a classic bear indicator has been indicated by a cross between the 50 candles moving average, 100 candle moving average and 200 candle SMA. Also, the RSI seems to have fallen back to bearish territory below 50.00
With this, BTC may be preparing for a move towards $3,000 if it effectively breaks through the support at $3,179 (200-week MA).
Daily chart
Photo Credit: Coindesk
The daily BTC chart above shows that Bitcoin has printed lower price highs (marked by arrows) along the downward sloping 10-dayexponential moving average (EMA). Interestingly, Bitcoin has consistently failed to close above that EMA for some time now. Consequently, the price mark of $3,465 remains the level to beat for the bulls.
Posted from my blog with SteemPress : https://www.digitalcoinnews.com/bitcoin-defies-extreme-oversold-conditions-prints-new-15-month-low/
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