Bitcoin Plunges As Technical Analysis Pointed To Overstretched Conditions




 

Bitcoin plunges this morning. It dropped almost 20% over Sunday and Monday and is now trading around $33,000. That’s the biggest two-day slide since May 2020 after hitting a record high of almost $42,000 on Jan. 8.

 

 

On the technical front, Jean-Charles Gand, Chief Technical Analyst at Market Securities, noted this morning, that price remains overstretched. “The chart below shows the price below its ascending 10-day moving average. It is worth noting the RSI has triggered a sell signal. The lack of bullish reaction today would raise the downside risk.

 

 

He added “The price has reached 6.2 standard deviations above its ascending 200-week moving average, which is still below the level of week of Dec.10, 2017. A mean reversion move is in progress.

 

 

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