Bitcoin (BTC) has fallen 6% in the last 24 hours and is trading at the lower end of a one-year price range. The cryptocurrency could find support between $27,000 and $30,000, although negative momentum signals point to further declines.
The Relative Strength Index (RSI) on the daily chart is heavily oversold, similar to January 24 this year and May 20 last year. However, in a downtrend, the oversold condition can last for several weeks before a price rebound begins.
On the weekly chart, the RSI is more oversold than it has been since March 2020, when a strong rally began. This time, however, long-term momentum has deteriorated, suggesting that the uptrend is limited beyond the upper resistance zone between $40,000 and $45,000.
For now, a recovery rally could be short-lived, especially given the strong break below $35,000 last week.