BITCOIN Technical Analysis Predicts more pain ahead as analysts hint

Technical Analysis of Bitcoin Suggests More Pain Ahead, with Analysts

Bitcoin's (BTC) attempts to rally

over the crucial $20,000 psychological level have failed as bears look to be too powerful in the aftermath of current macroeconomic factors.

 As a result, technical analysis predicts a more gloomy future for the flagship cryptocurrency.

In particular, a summary of Bitcoin's one-day technical analysis as of September 4 indicates a strong sell at 16, with neutral levels at nine. At the same time, none of the analyses advocates purchasing the asset right now.

A breakdown of the technical analysis indicates that oscillators signal a sell at two while nine indicate neutrality. Based on the moving average,  technical indicators suggest a strong sell at 14, while only one indicates neutrality. Overall, the analysis indicates that Bitcoin is oversold as the market awaits the potential of a rally.

This comes as Bitcoin continues to trade below its 200-week moving average, a gauge that has traditionally provided insight into the top crypto market cycle. The asset has been trading in the zone for about two months.

Bitcoin extends losses below $20,000

It's worth mentioning that Bitcoin temporarily surpassed $20,000 on September 2 after a solid US employment report. The asset briefly boosted the general market back to $1 trillion in capitalization. However, Bitcoin is currently trading at around $19,800 at the time of writing, dropping almost 2% in the last 24 hours.

Overall, Bitcoin has been trading around the $20,000 level for several weeks after seeing short-term gains that saw the price jump above $25,000. The price movement has prompted some experts to speculate that Bitcoin has reached its bottom.

For instance, when the Bitcoin monthly Relative Strength Index (RSI) reached 42.2, crypto analyst PlanB speculated that it might indicate the currency is poised for another surge based on previous trading trends.

Bitcoin's RSI is 42.2. If history is any indicator, RSI might reach 90+ in 1-3 years, unless you believe history is irrelevant and that this time is different. Your choice,” he said in a tweet on September 2. 

Bitcoin’s next course

Notably, the recent Bitcoin price fluctuation aligns with analyst expectations that a positive August job report would cause another correction in the crypto market.

This follows Bitcoin's high connection with the stock market in the context of rising inflation. As a result of the stronger-than-expected job report, the Federal Reserve is likely to take more aggressive tightening measures, such as raising interest rates, to combat the surging inflation.

As reported by CoinGabbar on September 3,  Kitco News analyst Rajan Dhall stated that Bitcoin's chances of surviving the extended bear market would need to rally above $25,066 by first aiming at $21,760. Although some experts predict a correction to $15,000, Dhall believes that if Bitcoin fails to hold around $20,000, it will consolidate to a low of $17,567.

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