Alert: Bitcoin Faces Support Test at $48,000, Oversold RSI Hints at Temporary Bottom
CryptoNewsTerminal Staff05 Aug, 2024
Alert: Bitcoin Faces Support Test at $48,000, Oversold RSI Hints at Temporary Bottom
Bitcoin Price Analysis Bitcoin (BTC) is currently facing a crucial support test at $50,000. If this level is broken, the next support is likely to be found at $48,000, according to analyst CryptoVizArt from Glassnode. This analysis comes as BTC has been declining in value since failing to break the $68,000 resistance level. The price has since fallen below the 200-day moving average, indicating a potential downtrend. However, the relative strength index (RSI) is showing oversold values on the daily chart, suggesting that a temporary bottom could be in place. Additionally, the 4-hour chart indicates that short-term support is likely to be found at $48,000. Despite these indications, CryptoVizArt cautions against drawing premature conclusions about a potential V-shaped recovery in BTC's price. He notes that BTC perpetual futures funding rates have hit their lowest levels this year due to the sharp market downturn, which could lead to a short squeeze and subsequent price increase.
