BTCUSD Declines as the Market Leaves the Overbought Region

BTCUSD declines as the market leaves the overbought region, as indicated by the RSI (Relative Strength Index). Following the retraction at $24900.00 of substantial support, a subsequent rally emerged. This gave rise to the formation of a bullish order block on the 28th of September, 2023. The consequential bullish order block played a pivotal role in reigniting the bullish trend as it extended into the month of October.

Notably, the current state of the market is a result of the overwhelming selling pressure at $37400.00. As of now, the trading range of the market lies between $26520.00 and $38000.00, low and high, respectively. BTCUSD is likely to dive lower as the market gets pushed into the discount zone of the current trading range.

BTC Key Levels

Demand Levels: $31860.00, $28470.00, $24900.00
Supply Levels: $37400.00, $43110.00, $48240.00

What are the Indicators Saying?

As indicated by the SMA (Simple Moving Average), the market has begun a bearish move. According to the RSI (Relative Strength Index), the retraction was deemed necessary, given that Bitcoin had already signaled a bearish divergence. In the present scenario, the market finds itself immersed in a distribution phase as it leaves the overbought region. The emerging bearish trend is therefore likely to continue until the discount zone is reached.

 

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