With the price having broken down from the 200-day Moving Average (200MA) and the Relative Strength Index (RSI) turning down from the overbought level, the price action on Bitcoin is signaling increasing strength for a possible reversal.
However, to continue trading significantly lower, BTCUSD would have to break through the price area of 51,000 and 56,000. And beyond that, it could open further decline towards the support level of 40,000.
Another perspective could be to view the identified price levels as hurdles which the BTCUSD could bounce, presenting good value entry positions for long term investors.
Buying opportunities on BTCUSD:
However, to continue trading significantly lower, BTCUSD would have to break through the price area of 51,000 and 56,000. And beyond that, it could open further decline towards the support level of 40,000.
Another perspective could be to view the identified price levels as hurdles which the BTCUSD could bounce, presenting good value entry positions for long term investors.
Buying opportunities on BTCUSD:
- 56,000 to 51,000 price area (short term 50% & 61.8% Fibonacci retracement level)
- 40,000 price level (long-term 61.8% Fibonacci retracement level)