Bitcoin experienced a fresh slash which compelled the price to visit the crucial lower support just above $36,400. However, the asset has initiated a flip as a considerable amount of a buying volume was an influx into the platform in the past couple of hours. Yet the asset is experiencing a huge truffle from the sellers and hence the flip may also be challenged in the short while from now. Therefore, despite the BTC price igniting a flip, the fear of the plunge still haunts the asset which could drag the price lower with just a small move.
The top indicators which point out a bearish trend prevail for the star crypto in the upcoming days are:
Price Under Ichimoku Cloud
The Bitcoin price is hovering below the Ichimoku cloud which is a bearish indicator. Ichimoku cloud is a collection of technical indicators that points support, resistance levels and momentum with the trend direction. When the price is below this cloud the trend is down.
Bearish RSI
The Relative Strength Index (RSI) which points out the flow of the price trend approaching the overbought or the oversold levels is currently bearish. In the higher time frame, the RSI has maintained a notable descending trend since mid-February which is expected to hit the lower oversold levels soon.
On-Balance Volume(OBV) Plateaus Beneath
The OBV is a technical trading momentum indicator that uses the volume flowing onto the platform to predict the changes in the stock price. Currently, the OBV is bearish as it moves towards the lower support. The negative balance is a sign of weakness which indicates the asset may fall on a high volume and could react upwards on a low volume which is pretty hazardous.
Collectively, the technicals point out towards extreme bearish trends. No doubt some of the indicators do not point out so, making the decision pretty uncertain. Like FIB levels denote a mid-cycle top and no formation of 5th Elliot wave and hence no parabolic move. This signifies, either Bitcoin may be ready to take a hard bounce or it has a true capitulation that may drag the price too as low as $20,000.
Also Read: Bitcoin Breaks Below $38k, These are the next levels to Watch for the BTC Price!
Source: https://coinpedia.org/bitcoin/bitcoin-flashing-warning-indicators-btc-price-needs-to-rebound/