The concerns involving the new Covid variant have shaken the market, which caused bitcoin to start the year 2022 downward. The price of the leading currency has been falling for 4 consecutive days (considering the date this text was written, January 6) and the support at US$ 47,000 was broken, having already reached the US$ 42,700.
According to Transfero’s analysis, prices are below the Moving Averages of 50 (MMS50) and 200 (MMS200), strengthening the downward movement.
“Breaking through this strong support of US$ 42.7 thousand could take the BTC price to lower levels, such as US$ 37.5, having this value as the last trading record in August 2021”, highlights Transfero’s team of experts.
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According to the company, another aspect that should be highlighted is the RSI indicator (Relative Strength Index), widely used to assess whether an asset is overbought or oversold. The RSI scale ranges from 0 to 100. Thus, if the indicator is below 30 points, it means that the market gives oversold signals; that is, its current price is lower than the asset’s actual value. “In this sense, it may be a good time to purchase the asset”, the experts suggest. On January 6, the RSI scored 32.26 points.
Another point that strengthens the bearish momentum of BTC is the Fear & Greed index, which hit the 15-point mark in the first week of the year, thus registering the lowest value in the last three months.
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In addition, last quarter, bitcoin’s total marketcap reached its lowest level, falling below US$ 850 billion, which had not happened since late September 2021.
“Despite the signs that we are in a strong downtrend, it may be a good period for accumulation of the main asset of the market, since good buying opportunities may arise”, indicates Transfero.