Technical Analysis – BTCUSD consolidates as declines pauses
August 24, 2023 11:28 am
After a prolonged period of sideways trading during the summer months, BTCUSD (Bitcoin) experienced a vast sell-off, dropping to a fresh two-month low of 25,350. Nevertheless, the king of cryptos appears to have temporarily paused its decline, with the price trading without clear direction for the past few sessions.
The momentum indicators currently suggest that bearish pressures are fading. Specifically, both the RSI and the stochastic oscillator managed to escape their oversold territories, hinting that the latest drop might have been overstretched.
If selling interest reignites, the recent two-month low of 25,350 could act as the first line of defense. Should that floor collapse, the spotlight could turn to the June bottom of 24,750 ahead of the 22,774 hurdle. Further retreats could then cease at 21,454, which served both as support and resistance in the past.
Alternatively, should the price regain traction, the April bottom of 27,000 might be the first obstacle for buyers to claim. Surpassing this zone, Bitcoin could advance towards the May resistance of 28,550 before it faces the crucial 30,000 psychological mark. A violation of the latter could open the door for the April peak of 31,064.
Overall, BTCUSD seems to have managed to halt its retreat, but the near-term risks remain tilted to the downside. For the bulls to regain confidence, the price needs to jump back above the 200-day simple moving average (SMA).
After a prolonged period of sideways trading during the summer months, BTCUSD (Bitcoin) experienced a vast sell-off, dropping to a fresh two-month low of 25,350. Nevertheless, the king of cryptos appears to have temporarily paused its decline, with the price trading without clear direction for the past few sessions.
The momentum indicators currently suggest that bearish pressures are fading. Specifically, both the RSI and the stochastic oscillator managed to escape their oversold territories, hinting that the latest drop might have been overstretched.
If selling interest reignites, the recent two-month low of 25,350 could act as the first line of defense. Should that floor collapse, the spotlight could turn to the June bottom of 24,750 ahead of the 22,774 hurdle. Further retreats could then cease at 21,454, which served both as support and resistance in the past.
Alternatively, should the price regain traction, the April bottom of 27,000 might be the first obstacle for buyers to claim. Surpassing this zone, Bitcoin could advance towards the May resistance of 28,550 before it faces the crucial 30,000 psychological mark. A violation of the latter could open the door for the April peak of 31,064.
Overall, BTCUSD seems to have managed to halt its retreat, but the near-term risks remain tilted to the downside. For the bulls to regain confidence, the price needs to jump back above the 200-day simple moving average (SMA).
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