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Is Bitcoin Already Oversold after Recording the Recent Plunge?

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by Azeez Mustapha · 3 min read
Is Bitcoin Already Oversold after Recording the Recent Plunge?
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From a technical point of view, there is no reasonable evidence that Bitcoin recovery is taking place on a bend.

Today Bitcoin endured another fall, tumbling to the price level at $6,700 and drawing closer to the price level at $6,600.

The cryptocurrency of the first choice has arrived at just $6,670.37 today, the most reduced level since late November. Now, the digital money has declined by over half from its 2019 high, as in June on the level at $13,879.21.

Bitcoin continued a consistent descending pattern for a considerable length of time, during which time it exchanged to a descending channel.

After the ongoing plunge, the question asked is that, has the world’s most famous crypto entered the oversold zone? When will the digital money rebound? A few enthusiasts communicated their perspective.

Concerning the RSI indicator, stated an enthusiast, there is no an oversold situation right now. Another expert recommended a comparative perspective, saying that Bitcoin is at present drawing nearer the oversold edge.

Concerning whether the advanced currency has bottomed out, numerous enthusiasts have demonstrated no in their analysis. Unmistakably BTC has not put in a bottom yet.

The price is in a descending pattern with an insane increment of 42% toward the finish of October, declared the enthusiasts.

The past bottom, about $6,600, will in all likelihood not be kept (that is, without a double bottom) since the market is powerless as far as recuperation from this level and volume.

Offering a comparative perspective, expressing that bitcoin costs could undoubtedly drop soon. Right now, it is bolstered by feeble support, about $6,600, which was quickly tried once and for all on November 24 and 25, 2019.

Descending momentum keeps on expanding as the moving average 5 and 13 tumbled from $9,500 and $8,360 as of December 1 to $9,125 and $6,700 today.

For the explicit forecast, we anticipate that selling should reduce soon. What’s more, that in all likelihood, a bottom may be a lot nearer to $6,000 or marginally lower.

BTC/USD May Anticipate Recovery and Look for a Push past $7,000

Supply Levels: $7,000, $6,500, $5000

Demand Levels: $8,000, $7,800, $7,300

Bitcoin bottomed out at $6,670.37 on Monday and tried to recoup above the $6,900 price level. For the most part unchanged on the daily chart, crypto’s father is struggling to regain lost ground above $7,000 amid market uncertainty.

From a technical point of view, there is no reasonable evidence that recovery is taking place on a bend. A downward RSI (Relative Strength Index) on an intraday position indicates that the price should retest the current low. When this gives way, more substantial support of the level of $6,500 may come into play. This barrier, reached by the November low, is overcome by a lower horizontal level of $6,350.

On the other hand, the movement for the level of $7,000 may ease the plunge, in any case, it is not enough to return BTC to the recovery path. The upper limit of the ongoing range at $7,300 is likely going to stop the bull and re-direct the price to the bearish zone. When it is off the beaten path, recovery can be reached up to $7,500.

Bitcoin News, Cryptocurrency news, News
Azeez Mustapha
Technical Writer Azeez Mustapha

Azeez Mustapha is a specialist in Computer Studies (including DTP), Forex and Crypto trading professional. Being expert technical and currency analyst, as well as experienced fund manager and author of several books, Azeez places strong focus on crypto market studies conducting comprehensive price analyses and sharing forecasts of presumptive market trends.

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