Decoding, What BTC Can Do Next & How?

Aug 5

The BTC on the daily chart has dropped significantly from an ascending wedge a week ago and has slipped two critical supports at $60278 and $56393 quicker in the past 24 hours, breaking the 200-day EMA.
As of writing, it hangs over a historical demand zone, where it traded at $51928 with an intraday dip of 11% on the daily chart. Breaking this would lead to $47361 and $43217, respectively.

Moreover, a look at the monthly TF chart, the BTC price had an ascending wedge in play. Where the price has been deflected from the upper border of the channel, causing the plunge.

In the past activity, it has been witnessed that the channels' middle line has shown previous comebacks in price, and recently, it has reached near this dynamic trendline.

Based on potential buyers' interest, this trendline could hold and bounce back. But if the seller's dominance accelerates, then deterioration would lead to a severe crash, making it a resonating crash globally in the crypto realm.

Over the daily, the indicators are all red and displaying further bearishness, as 50-day and 200-day EMA have been pierced down. The MACD showed a bearish cross with a broadening histogram downwards at 1542.02.

However, the loss of strength in price dip has been observed by RSI, as it has entered extremely oversold territory below 30 at 23.61. Since RSI has been oversold, there happens to be a good probability for BTC to rise.

Therefore, if it bounces back, then the hurdle would lie at $53614, $56393, and $60278, respectively.