BTCUSD Downward Retracement Ends as Price Nears Oversold State

BTCUSD began to climb the rising trendline in January 2023. This followed the reaction of the market at the $15512.00 demand zone. The MA Cross signalled a buy as the price rose upward off the rising trendline. Owing to the buy signal by the MA Cross as it made a bullish cross, the expansion continued until BTCUSD became overbought. According to the RSI (Relative Strength Index), the 70.0 level was clearly exceeded. Following a long period of time in an overbought state, the price finally declined downward.

At the second bounce off the rising trendline, the bullish trend continued as the bears panicked out of the market. Break of Structures occurred sequentially as the price of Bitcoin appreciated into the $31862.20 supply zone. The uptrend is likely to continue soon as the price moves closer to bouncing off the rising trendline.

BTC Key Levels

Demand Levels: $24750.00, $19568.50, $15512.00
Supply Levels: $31862.00, $37161.90, $48240.00

Technical Indicators:

The RSI indicator is heading downward in fractals. This indicates a possibility of the price entering the oversold state any moment from now. According to the MA Cross, BTCUSD is in a downward retracement. However, a reversal is likely to occur as the price enters the breaker block.

 

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