Bitcoin [BTC] remained struggling over the weekend as traders react to China’s latest news to strict cryptocurrency regulation. The crypto is down about 36% month-to-date and was trading around $37k at the time of reporting. Price recoveries should remain limited to $40k as the broader uptrend weakens.
Slowing momentum has been the dominant theme this year as bitcoin did not maintain all-time highs. Future sell signals were in situ prior to headlines accelerated price declines, which preceded a gradual then sudden capitulation of long positions.
The RSI on the 4-hour chart has struggled to interrupt above neutral over the past week. Within a downtrend, oversold readings can persist for extended periods, which suggests a scarcity of serious support levels.
Bitcoin re-tested minor support around $30k over the weekend, but stronger support is seen around $27k.
BTC is trading below the 100-day moving average and therefore the correction doesn’t appear exhausted at present levels. This suggests sellers should remain active as bitcoin struggles to interrupt above the $40k benchmark.