Bitcoin (BTC) is stuck in a month-long downtrend as traders experienced choppy conditions over the past few days. A break below $30,000 is likely given the loss of upside momentum and strong resistance on the charts.
The cryptocurrency was trading around $31,000 at press time and is down about 5% over the past week.
- The 50-period moving average on the four-hour chart is sloping downwards, which indicates a declining trend over the past month.
- Immediate resistance is seen around $32,000 and $34,000, which could limit upside if buyers return at support.
- The relative strength index (RSI) is not yet oversold on the four-hour and daily charts. This means sellers are in control as buyers await lower support levels.
- If $30,000 is broken, the next level of support is seen around $27,000, which is a 60% retracement from the March 2020 price low.
- Bitcoin’s current sideways trading is similar to the June-November 2018 range between $5,900 and $7,400, which preceded further selling as the bear market advanced.
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