- Bitcoin's big-picture outlook shows a slow-down in the 2023 rally and a potential reversal.
- The developments in the RSI and AO indicators reveal a bearish fate seen in 2021 and hints at an incoming crash.
- Investors need to be careful while bidding at the current levels.
Bitcoin price slows down after an 88% upswing. This development could see result in a bearish takeover followed by steep corrections and new yearly lows.
Read more: Recent Bitcoin price crash triggers whales to scoop BTC at discount
Bitcoin price shows weakness
The three-day chart for Bitcoin price shows a few bearish developments noted as follows:
- A slow but steady decline after forming a local top at $30,968.
- Relative Strength Index (RSI) slipping below the mean level, suggesting a shift in momentum favoring bears.
- Further inspection of RSI from March to June 2023 reveals a similar pattern seen in 2021, consisting of a failed flip of the RSI’s mean line in September 2021, followed by a slip below the 50-line in November 2021.
- Additionally, the Awesome Oscillator (AO) has also slid below the zero line, indicating that the bearish momentum is dominating.
- The last time AO slipped below the zero line after producing a double top was in December 2021, which marked the start of a bear market.
If history were to repeat, the 2023 bull rally could be coming to an end. If that’s the case, BTC could produce a temporary higher low at roughly $23,000, followed by a retest of the $19,000 support floor.
As seen in the chart below, the ideal macro bottom for Bitcoin price could occur anywhere between $13,575 and $11,898.
BTC/USDT 3-day chart
While there might be a short-term rally, investors need to be cautious. The only way this bearish outlook will be invalidated is if Bitcoin price flips the $32,000 resistance barrier into a stable support level. This move will trigger sidelined buyers to step in and could potentially trigger another leg-up for BTC that could retest the $35,260 and $41,273 hurdles.
Also Read: BlackRock Bitcoin ETF application, making a case for SEC approval
Top Three Reads
-
Hinman document release to intensify competition between Ethereum and altcoins: J.P.Morgan
-
XRP price recovers, could reach $30 if Ripple wins SEC, hedge fund manager says
-
Binance cancels UK registration amidst mounting regulatory hurdles
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls
Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.
Crypto markets brace for volatility in tight race between Trump and Harris
The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets.
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections
MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.