The bitcoin RSI is back to square one as the mood among traders is uncertain after BTC fell 5% overnight.
Bitcoin
BTC
Knock down
$19,892
Wall Street traded around $22,400 at the March 3 opening as analysts were divided about problems with the recovery.
Inverted “Bart Simpson” hopes in BTC
Data from Cointelligraph Markets Pro and TradingView showed BTC/USD trading flat, down $1,000 in the minutes following the previous flash crash.
Concerns over the fate of Silver Gate Bank exacerbated the current market’s cold feet, triggering a margin call cascade to $22,000, Cointelligraph reported.
At the time of writing, there was only a slight pullback, while opinions differ on how the short-term price mechanism will play out.
“Here I took some profit at $23,200 on my short and converted my stop loss to profit so it’s risk free,” Risk-Free Crypto Tony told his Twitter followers.
“Consider those who were fast for a long time when we didn’t even pretend to be resistant.”
Fellow trading account Dan CryptoTrader suggested that Bitcoin could see a mirror-like recovery to produce an inverted version of the classic “Burt Simpson” chart structure.
Meanwhile, Pintocchi, the prominent trader and analyst, took a step back, saying he had “no idea” what could happen for the markets.
“I want to see a clear break at $23.8K, which we can’t get. Then, waiting for the area at $22.3K, which is now full and full,’ said Cointelegraph contributor Michael van de Pop, founder and CEO of trading company Et , adding in his latest update on Bitcoin.
Failure to maintain $21,300 $20,000 “forfeitable”
Further analysis provided some more promising perspectives in the longer term.
Related: 3 BTC price barriers in 2023 fail to clear bitcoin bills
The overnight decline completely resets Bitcoin’s Relative Strength Index (RSI) on the daily schedule, with its score now matching its position in early 2023.
Popular commentator Mustache, who uploaded a fractal chart comparing current behavior at the end of the 2018 bear market, similarly indicated that better times were coming.
However, it is “still possible” for BTC/USD to fall to $21,300, he warned.
Meanwhile, $21,300 created a void level for demand, according to blockchain analyst Michael Crypto.
“BTC has hit TL support and there is a small reaction. I still expect to see a confirmation that will take a long time,” reads part of the four-hour chart analysis.
“Remember, $21300 is the zero level and the price breaks it down, 20k is inevitable.”
