The frenzy over the Bitcoin halving is over, so the price could enter into a sort of relaxation, seeking for its new equilibrium. This is sort of normal on financial markets, considering that many positions were open in order to gain in a short bull-run. Such positions are now being closed and some sort of repositioning is taking place. Analysts are noting that this is not at all a bad thing for BTC. One cycle is close to its end, and it needs to happen in order for BTC to enter into a new one. During the previous week BTC was mostly traded with prevailing selling orders. The highest weekly level reached was $67.350 at the beginning of the week. The rest of the week, BTC was traded lower, while during the weekend trading the coin reached its lowest weekly level, dropping at one moment below the $63K.
The RSI dropped below the level of 50, indicating that market participants are now eyeing the oversold market side. In this sense, some further corrections in price are possible in the coming period. Moving average of 50 days is slowing down its divergence from MA200, however, there is still a large distance between two lines, so the cross is not in store for some time in the future.
It is evident on charts that BTC is in correction mode at this moment in time. They also show that the end of the correction cycle might be found around the support line at $60K. Still, it doesn’t mean that this level will be reached during the week ahead. First, BTC needs to test a strong support line at $63K, before it makes a clear breach toward the lower grounds. As per current charts there is probability that the $60K will be a final oversold market momentum from where the BTC could start its new cycle to the upside.
The RSI dropped below the level of 50, indicating that market participants are now eyeing the oversold market side. In this sense, some further corrections in price are possible in the coming period. Moving average of 50 days is slowing down its divergence from MA200, however, there is still a large distance between two lines, so the cross is not in store for some time in the future.
It is evident on charts that BTC is in correction mode at this moment in time. They also show that the end of the correction cycle might be found around the support line at $60K. Still, it doesn’t mean that this level will be reached during the week ahead. First, BTC needs to test a strong support line at $63K, before it makes a clear breach toward the lower grounds. As per current charts there is probability that the $60K will be a final oversold market momentum from where the BTC could start its new cycle to the upside.
