overbought RSI levels and a bearish MACD signal creates an exciting environment that needs to be monitored closelyBitcoin battles to bounce back following a sudden decline with historic bearish indications; fresh threats suggest that it could fall to unprecedented levels of $40K.
Bitcoin is attempting to recover following a vicious sell-off that rocked the crypto markets, though analysts caution that the threat of an even greater correction remains.
Bitcoin is trading at around 86,470 with a minor daily decline, and although the price still shows signs of recovery, high volatility and liquidation waves continue to trigger strong market rejection.
On X (Twitter), Crypto Rover reported that Bitcoin Relative Strength Index (RSI) had reached major peaks seen just six times previously that had been followed by violent bullish recoveries.
Source – X Crypto Rover
However, another prominent market analyst on X, Ali, warned of a bearish monthly MACD signal, which has already resulted in average losses of about 60 percent, suggesting that it can reach lows near 40,000 in case the pattern repeats.
Source –X, Ali
Oversold Signals Ignite Faint Hope, but Bearish Trends Persist
The latest records show Bitcoin liquidations of 66.52 million, the majority of them short of 43.53 million, which is a strong indicator of high selling pressure that momentarily pushed BTC to 80,000 before its slight recovery.
Crypto Rover identified the highly oversold RSI positions as being vulnerable to short-term reversals to the bullish side, but Ali has pointed out the possibility of an even larger downtrend with bearish MACD signals on the monthly charts.
Although Bitcoin’s 24-hour volume has surged to over 67 billion dollars, merchants still disagree on whether this marks a rebound or the beginning of a larger bear market.
