Bitcoin Dips into Oversold Region

Bitcoin’s price continues to dip towards a bearish order block in the demand zone of $52,000. Recently, the price pulled back to a resistance level characterized by a bearish order block, which led to increased selling pressure and caused a dip to $54,000. Since reaching $73,679 in March, Bitcoin has struggled to climb higher, initially moving into a range-bound pattern and now descending into a downward trend. Bulls are likely to focus on the demand level of $52,000 to potentially enforce a reversal.

Market sentiment remains cautious as Bitcoin navigates through the bearish territory. The continuous downward pressure has resulted in traders closely watching the demand zone around $52,000. A strong defence of this level by the bulls could signal a potential reversal, providing a much-needed respite from the bearish trend. However, any failure to hold this level could lead to further declines, making it essential for traders to monitor these key levels and indicators.

Bitcoin Key Levels:

• Demand Levels: $56,930, $50,581
• Supply Levels: $67,260, $71,500

 

Indicators Analysis:

The pullback to the bearish order block at $64,000 was reinforced by the presence of the 9 and 21-period Moving Averages, which served as resistance. This further exacerbated the downward pressure on the price. Currently, the Relative Strength Index (RSI) indicates that the market is oversold as it nears the demand level of $52,000. Historically, an oversold RSI suggests a potential for a price reversal. The test of this demand level is expected to aid in pausing the price crash. However, until a clear shift in market structure is observed, the price remains in a downward trend.

Learn from market wizards: Books to take your trading to the next level

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @ItuGlobal

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Jagdip Cheema

• 

  Mark Austin

• 

  Graham Neary

• 

  The Banned Blogger