There has been some pretty negative news for the US, when Fitch downgraded its long-term government debt by one notch, to AA+ from AAA. At the same time this news did not have almost any impact on BTC`s price. So, the question currently is, what is the market waiting for? Based on available data on market movements, it seems that some repositioning is occurring but within asset classes, where movement of funds between different assets is not happening at this moment. On the other hand, holders of BTC are still just holding their coins, which is evident also based on daily trading volumes. For the last three weeks, daily trading volumes have significantly decreased, with quite a modest outflow of funds from the crypto market. This is a major reason why BTC was moving within a relatively short range for the last three weeks, not being able to break $30K resistance line, but it also was not able to clearly test $28K, as a short-term stop.
The resistance line at $30K has been tested on only one occasion during the previous week. There was absolutely no market strength to break this line, so BTC reverted a bit back. Lowest weekly level reached was $28.475 also on only one occasion. During the week BTC mostly oscillated above the
29K
level. RSI reached level of 42, however, there is still space for the price of BTC to move to the downside until the final oversold market is clearly reached. Moving averages of 50 and 200 days are currently moving as two parallel lines with the downtrend, without any indication that potential cross might occur any time soon.
Charts were pointing for some time now, that BTC needs to test $28K in order to be able to revert to the upside. RSI is also indicating that such a move could bring the market to a clear oversold side and indicate a new cycle to the upside. Significantly decreased daily trading volumes were unable to provide push to the downside, which might occur during the week ahead. In case that $28K is clearly tested, it will open a road for BTC to revert back to $30K for one more time.
The resistance line at $30K has been tested on only one occasion during the previous week. There was absolutely no market strength to break this line, so BTC reverted a bit back. Lowest weekly level reached was $28.475 also on only one occasion. During the week BTC mostly oscillated above the
29K
level. RSI reached level of 42, however, there is still space for the price of BTC to move to the downside until the final oversold market is clearly reached. Moving averages of 50 and 200 days are currently moving as two parallel lines with the downtrend, without any indication that potential cross might occur any time soon. Charts were pointing for some time now, that BTC needs to test $28K in order to be able to revert to the upside. RSI is also indicating that such a move could bring the market to a clear oversold side and indicate a new cycle to the upside. Significantly decreased daily trading volumes were unable to provide push to the downside, which might occur during the week ahead. In case that $28K is clearly tested, it will open a road for BTC to revert back to $30K for one more time.
