Bitcoin has been under selling pressure since it made a new high of 19,500 for this year. In fact, yesterday’s sell off was the biggest sell-off since March this year—the Bitcoin price dropped over 3,000 points yesterday.
Looking at the technical analysis on the 4-hour time frame, it becomes clear that there is a divergence between the price and the Relative Strength Index. In simple term, the price has made a lower low while the RSI has made a high low, and this patterns usually means that the prices are likely to move higher.
Having said this, it is important to keep in mind that the Bitcoin price has dropped below the 50 and 100-day simple moving averages on the 4-hour time frame which confirms that the bulls do not hold the same sort of control which they had before. However, there are still hopes as the price is trading above the 200-day SMA, and as long as the price continues to trade above this average, the chances are that the Bitcoin price will recover its losses.
