In the daily and weekly time frames, Bitcoin’sRSI has turned bullish, but the price movement has yet to close the gap with this trend reversal.
During the week of May 23-30, Bitcoin formed another modest bearish candlestick. This was the ninth straight bearish weekly candlestick since the week of March 28-April 5. A long-term rising parallel channel was also broken as a result of this.
Despite this, the price has failed to go below its low of $26,700 set on May 12th.
Currently, the price is hovering slightly above the 0.618 Fib regression support level of $28,700. BTC has gone below the horizontal support of $30,000, even though this is a critical Fib support level. As a result, unless the price falls below $20,000, there is no further horizontal support.
Bitcoin Price Could Fall Below $20,000
The weekly RSI is presently at 34, which is worth noting. This is the same as the crash in March 2020. The only time the RSI has produced a lower reading since 2017 was around the December 2018 bottom of $3,300. Overall, the weekly chart looks to be mediocre. The RSI has hit levels typically linked with bottoms, and the price is trading above Fib support, which is positive.
On the negative side, the price has broken through a horizontal support region and an ascending parallel channel. The weekly overview’s assessment of price breaking down from a horizontal support level is supported by the daily chart. The horizontal level that has now converted to resistance in this period is $30,500.
Despite this, the daily RSI remains very positive.
To begin with, it has created a significant bullish divergence (green line), which generally precedes bullish trend reversals. Furthermore, the indicator has broken free from a downward trendline (dashed, black).
The next closest resistance region for Bitcoin if this event triggers an upward rise is between $37,500 and $40,000. The 0.5-0.618 Fib retracement resistance region is the target range.
As a result, the daily chart is somewhat more bullish than the weekly chart. The RSI is firmly positive, even though the price is trading below horizontal resistance.