The current drop of Bitcoin (BTC) and breaking the $70,000 barrier may be concerning for the average trader,
but in terms of technical analysis, the chart sends completely different signals that should be taken into account:
1- Extreme Oversold:
The Relative Strength Index (RSI 6) currently records only 11.67.
This low level is rarely seen and technically means that selling pressure has reached a state of "Exhaustion." Historically, reaching these levels calls for a price correction bounce to alleviate the intensity of the indicators, even if the overall trend is downward.
2- Deviation:
The current price ($69,983) is significantly deviating by about $7,000 from the 7-day moving average (MA7 at $76,800).
Markets tend to revert to their means, and this price gap is often filled by a quick bounce.
3- Key Areas:
We are currently at the daily support level of $69,163.
• Positive Scenario: Holding above this low with the emergence of positive divergence on smaller timeframes could be an excellent speculative entry signal.
• Negative Scenario: Breaking $69,160 with a clear close negates the positivity of the RSI and opens the door for further decline.
Summary:
The numbers indicate an imminent "technical bounce." Selling in these areas is considered a very high risk due to the saturation of indicators. Watch the reaction at the current support.
And share your opinion with me
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