The price of the leading cryptocurrency, Bitcoin [BTC], suffers a near 10% drop over the past 24-hours, fueled by talks of tighter United States monetary policy and China’s ongoing pressure on cryptocurrency miners. The world’s leading cryptocurrency remains up about 11% year-to-date, although the uptrend has significantly weakened over the past few months.
Resistance is robust around the $40k price index, which could keep sellers active towards lower support at $3k. The subsequent level of support is at $27k which could stabilize the present sell-off.
At the reporting time, BTC is presently trading around $31,662 USD, which is -12.56% lower for the day.
Bitcoin registered a series of lower-cost highs since April and is now oversold supporting the daily RSI.
However, during a corrective phase, oversold conditions can remain in situ for a short time prior to a price recovery materializes.
Bitcoin will get to remain above $30k to avoid entering the market territory, which is defined by an extended period of drawdowns (percent decline from peak to trough) greater than 30%.
The downward-sloping 100-day moving average indicates trend weakness over the near term. This suggests that price rises should remain limited until oversold signals appear on the weekly chart, which could occur later this month.