In the next few days the price of the first cryptocurrency to find support at $5000, allow the analyst CoinDesk Omkar Godbole.
After reaching the lowest in 13 months of highs, the price of bitcoin is in a deep oversold. Weighted average first rate of bitcoin has dropped more than 10%, which was one of the strongest lows of this year.
Currently, the “grandfather” is trading around $5400 on the exchange Bitstamp. The price corresponds to the values of October last year.
A clear break of the key support level at $6000 tells about the resumption of sales, and continuing to the end of December last year, after it was reached a historical high close to $20 thousand.
It is highly likely a continuation of the downward price movement. However, the relative strength index (RSI) indicates a weakening of the pressure from the sellers.
As the graph shows, a massive red candle broke the lower boundary of the triangle, formed for nine months. The price is much lower than the exponential moving averages (EMA), which indicates a pronounced bearish sentiment.
Not encouraging and the schedule for the older timeframe — the price of BTC has broken trend line drawn through the lower values in November 2011 and August 2016.
Confirmation of the bearish mood in the market also is crossing EMA with periods of 5 and 10, held in September. Moreover, the RSI for the first time since the end of the 2015 shows, around 50.00.
High probability that will not withstand even the psychological mark of $5000. To restrain downward movement is can only oversold on the RSI.
Summing up, it can be noted that the probability of upward correction in the short term is extremely low. Pressure sellers may weaken if the price fixates above the June low of $5780. To change the mood in the market must confidently overcome level of $6000, which is now resistance.
Earlier, an analyst Fundstrat suggested that you might need “weeks or months” to restore the price of bitcoin.