From a technical point of view, Bitcoin’s price has been on an extended downtrend since June 6, losing 15% of its value to the current level.
Over the same period, the daily relative strength index (RSI) dropped from 55 to 27, and the price dropped to the oversold region, as shown in the chart below. This means that the downtrend is running out of steam. The sellers will soon run out of BTC to sell, and the buyers will take an opportunity to buy more on the dips.
If this happens, the price is likely to rise from the current levels to reclaim $61,000 and then re-hit the 200-day exponential moving average (EMA) at $64,205.
Such a move would pull the price out of the downtrend and above the descending trendline. The next line of resistance would arise from the $65,500 to $66,200 supplier congestion zone, where the 50-day and 100-day EMAs currently sit.
