The cryptocurrency news today show that Bitcoin slides again, losing a tenth of its value on March 8 during the weekend when the volume has been at the thinnest. The pre-halving rally, according to many out there, is apparently over and not starting again.
We can see that BTC broke out of a worrying descending channel on March 5, but managed to retest the support line of the channel several times. Now, this coin has broken back into it after three days. All of this gave Bitcoin two very real downside targets of $8,100 and $7,500 in the short term.
While the upside resistance is being first at $8,700, it later slid to $8,348 which is the current level. The real question we must ask ourselves now is whether the validity of the drastic price action over the weekend and next week could see a monstrous bullish rise.
The Relative Strength Index (RSI) indicator on the 4-hour chart suggests that we could have some distance left to fail with a reading of above 31. This tells us that as Bitcoin slides again, it is approaching heavily oversold levels on this key timeframe, and historically it must break below 30 before seeing a new reversal.
The hourly, on the other hand, seems massively oversold and at 18.62, which is approaching levels that we haven’t seen since February 15. One would now hope to see a reversal at this point. However, despite the RSI appearing to pivot on the date, the BTC price did not. The Bitcoin news now show that the price of the dominant coin keeps on falling.
Another indicator worth examining is MACD, which is great when looking to identify bull or bear trends. The current MACD shows us that as Bitcoin slides again, we see a bearish trend and is showing signs similar to the false bull phase that we saw in August and September of 2018 (when BTC fell from $8,000 to sub $4,000 in a matter of weeks).
The week ahead of us should give us plenty of answers as we have two main bullish indicators ahead of us. For now, the market is bleeding and there are no signs of a potential recovery.
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