Tuesday saw a roughly $7,000 decline in Bitcoin price as markets recovered after the Easter weekend.
The level of the #BTC RSI was last seen when the price of Bitcoin was $41,800.
To avoid a prolonged decline, the 200-day EMA is still vital.
More and more, the price of Bitcoin (BTC) is moving away from the $69,000 mark, a crucial barrier that has blocked the pioneer cryptocurrency's upward potential for several years. However, the fact that the Bitcoin RSI indicator is at levels not seen since January is causing anxiety.
After plunging from $71,366 to $64,588 in just 48 hours, the new Bitcoin ATH pre-halving price is contingent on $69K breaching. From Monday to the start of Tuesday's US session, the market lost roughly $700 million as a result of the nearly $7,000 collapse.
Once buyers regained control of the market and the upward impetus for Bitcoin vanished, the drop occurred. Some experts think the decrease is just a shake-off tactic used to eliminate weak players.
Crypto RSI has reset to levels last seen in the last week of January, when Bitcoin price was about $41,800, and experts have noticed that it has fallen below 50. In particular, this occurred just before the inflows into exchange-traded funds (ETFs) began to skyrocket.
Despite this, data shows that weekly ETF flows are positive again after a period of oscillation between slower inflows and higher withdrawals than inflows. Bitcoin bulls should take heart from this.
Alternatively, 60 million USDT has been transferred from Tether's treasury to Kraken Exchange, marking the beginning of the USDT pegged cryptocurrency's journey away from its previous one. To ensure that BTCPay Server can keep working on its mission to make Bitcoin accepted by anybody, the network has also given $100,000 to the organization. The digital asset's uptake is encouraged by this.
Worse still, rumors have circulated that UBS, which oversees $3.5 trillion in assets and has a market valuation of around $98 billion, may soon add Bitcoin exchange-traded funds to its platform. A watershed moment in the mainstream banking industry's acceptance of cryptocurrency has occurred with UBS's introduction of Bitcoin ETFs.
This optimistic step lowers the threshold for ultra-wealthy people to invest in digital assets. Major players give in to the temptation of cryptocurrency, which causes the adoption curve to steepen. The most recent development is that Coinbase received what seems to be a test transaction from the US government totaling around 30,174 BTC, or $2.1 billion. Reportedly, the Silk Road hack monies are where the Bitcoins came from.
"The government was patiently waiting for Judge Failla to reject the SEC's claims that Coinbase engaged in brokerage activity through Coinbase Wallet before taking this action," said James Seyffart, an ETF analyst for Bloomberg.
Prognosis for Bitcoin Value when the BTC RSI Falls Below 50
After the BTC RSI fell below the 50 mean threshold, the market is now tilting towards the downside, despite a generally optimistic view on the large picture. Not only is the RSI showing declining momentum, but the Awesome Oscillator (AO) indicator also corroborating this.
The 200-day Exponential Moving Average (EMA) provides important support around $65,556 for Bitcoin price since October. If Bitcoin price falls below this level, the collapse might continue to the $60,800 level.
Look closely at the Bitcoin chart; there's a hidden bearish divergence there, with the relative strength index making lower lows and the price of Bitcoin making higher lows. If a complete reversal occurs, the likelihood of additional losses is increased.
If the 200-day exponential moving average (EMA) continues to act as support, the price of Bitcoin is expected to rise again. The chances of additional rise would increase if the $69,000 mark turned into support, signaling more purchase orders. Prior to the possibility of recording a new top above the $74,000 level, the primary objective in such a directional bias would be to regain the $73,777 peak.
#BullorBear $BTC #Halving