The flagship cryptocurrency does not seem to be doing very well for now. At press time, it is trading for $34,080. A little while ago, the price of Bitcoin seemed to be recovering. Last week, investors with long positions were hoping that the weekend ends in a hammer position.
This time, the stakes are quite the same. The analysts claim that $30K is also a support level. Nevertheless, at some point, the strongest support level gave way. After the successful recovery of price action since Monday, a slew of new liquidation pressure sent Bitcoin tumbling down the alleyways once again. At this point, there is little hope that the bullish momentum could revive. As a last resort, the bullish traders are holding onto one index readings that might help them turn the tables.
The Market Bulls are Putting their All into the Market and Trying to Break the Balance between Selling and Buying
Many Bitcoin analysts claim that in the current bull run, Bitcoin price value will move as far as a six-figure price rate. However, at this stage, it seems that the chances of any recovery attempts are futile. Every attempt of bulls is met with the bears dumping the price mark with a massive selloff session. For an investor, it is safe to assume that there might be further turbulence coming their way.
At present, there is a tug-of-war going on between bulls and bears. This can be measured with the help of an indicator called the RSI or Relative Strength Index. This indicator measures the prowess of an asset class against its price action. Data from Tradingview.com suggests that a new bullish divergence is forming on the RSI in the last three days.
After the most recent selloff of Bitcoin, the price action has dwindled. The bulls have been unable to neutralize it with the oversold territory. However, the selloff leads to a trend line that opens into the alleys of bear markets. The histogram indicates that such a similar trend line formed before the Black Thursday event.