The price of Bitcoin is up 2.33% at $21,027.63 on mid-Tuesday trades.
Bitcoin managed to hold above the $20,000 round level on Monday amid weak trading activity due to the US holidays and attracting enough speculative demand after dipping below the meaningful round level. This recovery removes some of the extreme oversold nature of the cryptocurrency. Still, it will be too early to talk about a long-term reversal: all negative fundamentals remain.
Meanwhile, Bitcoin miners were also not exempted from the selling pressure as they sold 9,000 BTC from their treasuries. The declining revenue presents a problem as production costs increase. In addition, the mining hash rate has fallen by 10% from its all-time high, suggesting that some miners are no longer operating at full capacity.
Bitcoin’s Fear and Greed Index currently remains at 9, indicating “Extreme Fear.”
On the technical side, the RSI of Bitcoin stood at 31.91 and is currently trading above MA (5) but below MA (20) and MA (50). So, SELL position can be taken with the following target and stop-loss:
TRADE SIGNAL: BITCOIN – BUY: 23480, TARGET: 26555, AND STOP-LOSS: 21130