Bitcoin (BTC) continues its downward trajectory, trading around $82,249 while remaining within a well-defined descending channel. This structure suggests that the market is still in a bearish phase, with price action consistently forming lower highs and lower lows. However, with the Relative Strength Index (RSI) nearing oversold levels, a potential short-term bounce could be on the horizon.
The descending channel, marked by the orange trendlines, has been guiding BTC’s price lower. Each attempt to break above the upper boundary has been rejected, reinforcing selling pressure. The lower boundary of this channel, which aligns with a key support zone between $80,000 and $78,000, is now acting as a potential inflection point. If BTC manages to hold this level, buyers may step in to push the price higher.
At the same time, the RSI is currently at 34.75, approaching the oversold threshold of 30. Historically, when RSI reaches oversold conditions, BTC has shown a tendency to bounce, as selling momentum temporarily weakens. This could provide a short-term relief rally, especially if the price remains supported at the lower boundary of the channel. However, if Bitcoin fails to hold $80,000 and RSI remains weak, further downside toward $78,000 or lower could be in play.
Moving forward, traders should closely watch how BTC reacts to the lower channel boundary and whether RSI signals a reversal. A bounce from this level could lead to a recovery toward $85,000–$87,000, while a breakdown would likely confirm further losses. Until BTC breaks above the descending channel, the overall trend remains bearish, and caution is advised.
The descending channel, marked by the orange trendlines, has been guiding BTC’s price lower. Each attempt to break above the upper boundary has been rejected, reinforcing selling pressure. The lower boundary of this channel, which aligns with a key support zone between $80,000 and $78,000, is now acting as a potential inflection point. If BTC manages to hold this level, buyers may step in to push the price higher.
At the same time, the RSI is currently at 34.75, approaching the oversold threshold of 30. Historically, when RSI reaches oversold conditions, BTC has shown a tendency to bounce, as selling momentum temporarily weakens. This could provide a short-term relief rally, especially if the price remains supported at the lower boundary of the channel. However, if Bitcoin fails to hold $80,000 and RSI remains weak, further downside toward $78,000 or lower could be in play.
Moving forward, traders should closely watch how BTC reacts to the lower channel boundary and whether RSI signals a reversal. A bounce from this level could lead to a recovery toward $85,000–$87,000, while a breakdown would likely confirm further losses. Until BTC breaks above the descending channel, the overall trend remains bearish, and caution is advised.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.