With the largest part of the cryptocurrency market continuing to record unremarkable price trends, its representative asset – Bitcoin (BTC), is no exception, fighting to keep its head above the $26,000 level as indicators suggest that further declines could be coming.
As it happens, Bitcoin has broken below the 200-day simple moving average (SMA), and its behavior over the last decade suggests the flagship decentralized finance (DeFi) asset could drop to touch its realized price, which currently stands at $20,350, according to the analysis by crypto trading expert Ali Martinez shared on August 21.
Earlier, Martinez posted his observations that predict an even worse dip for the maiden cryptocurrency, arguing that the TD indicator “presented a buy signal on BTC daily chart, but confirmation won’t come until a sustained close above the 200-day MA,” adding that breaching the support between $25,200 and $24,800 might pave the way for $20,000.
Bitcoin price analysis
At press time, Bitcoin still remains above this support range, changing hands at the price of $26,061, which indicates a drop of 0.19% on the day, adding up to the 11.36% loss on its weekly chart, as well as declining 12.96% across the previous month, according to the latest data retrieved on August 21.
Meanwhile, a pseudonymous crypto analyst known as El_crypto_prof has pointed out that the recent Bitcoin sell-off had pushed its relative strength index (RSI) to its lowest level in over 20 months, indicating a potential oversold condition but that historical chart patterns suggest a possible recovery between 28% and 60%.
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