Bitcoin is likley to touch the 2900 mark again if it breaks the 3100 support level
Bitcoin price is trading below its downward trend line on intraday (4-hour) time frame. This confirms that the trend is to the downside and as long as the price stays below this trend line, this will be the dominant trend. Another confirmation of the downtrend comes from the fact that the price is trading below the 50 and 100-day moving averages (shown in dark green and pink colour respectively). Moreover, the 50-day moving average is also trading below the 100-day moving average which further strengthens the above argument. Finally, the balance of power indicator isn’t supporting the bull case either, it is well below the zero level and this shows that the selling pressure is the dominant force.
The price of Bitcoin has been trading mostly sideways during the past three days and the fact that it failed to break above the 50-day moving average shows that the bulls have no momentum behind them. Having said this, things could change in the coming days because of the Relative Strength Index has dipped into oversold zone. A reading near 30 shows that the price is oversold and it generally brings new buyers in the market and reading near 70 sends the message that it is overbought.
The support zone is shown by the dotted and solid light green horizontal lines and the resistance is shown by the dotted and solid red lines.
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