Bitcoin: Sittin' Sidways...For Now.

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BTCUSD Statistics:

Market Capitalization: 1.05T
CryptoAsset Rank: #1
24-Hour Return: +1.25%
7-Day Return: -11.2%
From All-Time High: -13%

Technical Setup:

Yesterday, BTC closed below its 50D SMA for the first time since October 8, 2020.
The move lower coupled with BTC's inability to immediately get back over the 50D SMA suggests that the bears could be taking control of the market in the short-term.
Until BTC closes above the 50D SMA, one can expect BTC to remain rangebound between 51K and 58K - historical relevant support and resistance levels.
As we warned last week, the downtrend in BTC's 14-day RSI ended up foreshadowing the bulls running out of momentum. Although we've now seen BTC sell-off and close below the 50D SMA, it should be noted that the RSI is also bouncing off of the support of what looks to be a descending triangle pattern. Because ascending channels are typically bearish, this may mean that BTC is headed towards "oversold" territory (RSI < 30).
Although the descending channel is inherently bearish, one could also argue that BTC is consolidating and a breakout to the upside is likely to manifest into the RSI pushing through its resistance.
For now, all eyes should be on the 50D SMA at $56,600 for further insight as to where BTC is headed.

phum126

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