Bitcoin Bulls Eye $6K Bottom After 4-Month Low

Published on by Coindesk | Published on

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Bitcoin is still looking south, having hit four-month lows today, but the bearish momentum may wane due to short-term oversold conditions, the technical charts indicate.

At press time, bitcoin was slightly higher at $6,453.

The drop to the four-month low has bolstered the already bearish technical setup and raised the odds of a sell-off to $6,000.

Currently, the RSI is holding below 30.00.

Historical data shows BTC stages a "V"-shaped recovery every time the RSI drops to or below 30.00.

The downside break of the pennant indicates scope for a drop below the February low of $6,000.

Further, on the weekly chart, the RSI fell below key support of 53.00 in February, signaling a long-term bullish-to-bearish trend change and is currently hovering below 50.00.

View Longer term, BTC is still eyeing a drop to $6,000 amid a generally bearish market.

The probability of a major "V-shaped" recovery is low.

Only a daily close above 10-day MA, currently seen at $7,214, would signal bearish invalidation.