BTC/USD Falls for Fourth Day to Pull RSI from Overbought Zone

BTC/USD registers a four-day decline for the first time since September, with the recent decline in Bitcoin pulling the Relative Strength Index (RSI) below 70 to indicate a textbook sell signal.

BTC/USD Outlook

BTC/USD trades to a fresh weekly low ($62340) as the RSI continues to fall back from overbought territory, and a break/close below the $62220 (23.6% Fibonacci retracement) to $62780 (100% Fibonacci extension) region may lead to a test of the monthly low ($59675).

Next area of interest comes in around $57590 (78.6% Fibonacci extension) to $59102 (December 2021 high), but BTC/USD may attempt to track the positive slope in the 50-Day SMA ($52279) if it continues to hold above the monthly low ($59675).

Need a move back above $65470 (261.8% Fibonacci extension) to bring the monthly high ($73791) on the radar, with the next region of interest coming in around $77790 (161.8% Fibonacci extension).

--- Written by David Song, Strategist