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.

CoinDesk - Unknown

  • 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.  

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC