Bitcoin price could rebound after reaching extreme oversold levels
- BTC price is inching towards a Relative Strength Index historical low.
- Bitcoin price is on a steep decline.
- Invalidation of the bullish scenario is a break below $28,799.
Bitcoin price steep decline spells for a capitulation event underway. More price decline is likely to occur, but traders should consider the bullish macro thesis event until $28,799 is broken.
Bitcoin price likely to tap $29,500
The Bitcoin price decline has analysts deeming the cryptocurrency market a bear market. Although the decline is quite powerful, from a macro perspective, the only way to truly validate the bear market opinion is a breach of the $28,799 level, which would invalidate the bullish Bitcoin triangle thesis.
Bitcoin price is coming to a historical level on the Relative Strength Index. The 7% zone on the RSI was last touched in November 2019. Market bottoms are historically known to occur at extreme RSI lows. Thus an entry at this level, whether 30,000 or $29,000, will be a superb entry.
BTC/USDT 4-Hour Chart
The invalidation of the Bitcoin triangle remains at $28,799. If this level gets breached, a bear market would be genuinely underway. BTC price next targets would be $20,000 and $17,000, resulting in a 40% decrease from the current BTC price.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
