The battle to set the next Bitcoin trend is being waged between the $8,100 to $8,300 price point.
During the last three weeks, Bitcoin has tried to move over or under that zone only to be brought back into place by that “invisible hand” of the market.
Today, most of the top 100 cryptocurrencies by market cap are in the red. And Bitcoin, as expected, set the tone.
After a small recovery of about $70 per bitcoin pumped the price back to $8,400, the coin corrected again to $8,100. At the moment, BTC is hovering near the $8,200 price tag, according to data from TradingView.
This would be the third week in which Bitcoin remains below the average price of the last 200 days (EMA 200). Many analysts see this as a strong signal that bulls have lost the strength they had shown throughout the year.
The last time Bitcoin had a price below the EMA200 was in April, when a big green candle confirmed a bullish trend that peaked in June when BTC spiked to more than $13,700 per coin.
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Since then, Bitcoin has entered a downward channel, and it hasn’t been able to get out—at least, not in the direction the bulls would like it to. The bears, on the other hand, have been able to break support, but only for short periods of time.
The Relative Strength Index (RSI) that measures how much the bulls or bears dominate the market is touching annual minimum levels. This means that throughout 2019, sellers had not been so willing to unload their treasured cryptos for so cheap.
A low RSI is generally taken as a positive long-term sign, since it signals to traders to expect a wave of long positions after a period of overselling.