Bitcoin‘s price has significantly declined since January 11, falling below $40,000 this week, marking the second-largest drop of 2023. This downward movement raises questions about the future of Bitcoin’s value.
Technical analysts note that Bitcoin’s price had been rising since the beginning of 2023, reaching a peak of $48,969 following the approval of an ETF. However, a subsequent drop formed a weekly candlestick indicating a loss in value.
The highest level for Bitcoin was at the 0.618 Fibonacci retracement resistance level. Since then, the price has fallen, and the weekly Relative Strength Index (RSI) indicates a downward trend. Investors use the RSI to gauge overbought or oversold conditions and to decide whether to accumulate or sell a token.
Readings above 50 suggest bulls have the advantage, while readings below 50 indicate the opposite. The RSI has fallen below 70 and is trending downwards. Crypto analysts and traders are mostly bearish on the short-term trend of Bitcoin. Altcoin Sherpa predicts a possible drop to the 0.382 Fibonacci retracement support level at $36,400. CredibullCrypto and TheTradingHubb suggest another low may be on the horizon due to wave counts.
Contrarily, IncomeSharks goes against the community consensus, proposing that Bitcoin could shortly rise to $44,000, suggesting a potential short-term rebound.