Bitcoin has experienced a significant 5% drop in 24 hours, falling from over $91,000 to around $86,156. The RSI reading of 8.45 indicates extreme oversold conditions, which often precede a potential bounce. The price is now well below both the 20-day and 50-day moving averages, suggesting strong downward momentum in the short term.
Current Market Situation
Bitcoin dropped sharply from $91,800 to $86,156 in recent hours. The RSI is at 8.45, which is extremely oversold (below 30 is oversold). This means selling pressure has been very strong, but such extreme readings often lead to temporary rebounds.
What the Indicators Tell Us
The price is below both the 20-day ($89,636) and 50-day ($90,345) moving averages, which is bearish. However, the extremely low RSI suggests the drop may have been too fast. High volume during the decline shows many sellers, but also means buyers might step in at lower prices.
Support and Resistance Levels
Recent support (where price stopped falling) was around $90,421 and $90,552. Resistance (where price stopped rising) was near $91,825 and $91,000. The sharp break below these levels means we need to find new support areas.
Trading Strategy for Beginners
Given the extreme oversold condition, this could be a buying opportunity for a short-term bounce. However, wait for signs of stabilization before entering. Set a stop-loss below your buy price to limit potential losses if the decline continues.
Risk Management
Only invest what you can afford to lose. The market is volatile, and prices could drop further despite the oversold reading. Consider buying in small portions rather than all at once to average your entry price.
Beginner Recommendations
Advice: buy
Buy Price: 85500 USDT
Sell Price: 89500 USDT
Key metrics
| Price | 86156.3200 USDT |
| 24h Change | -5.03% |
| RSI(14) | 8.45 |
| SMA20 / SMA50 | 89636.43 / 90344.90 |
| Daily Volatility | 2.53% |
| Sentiment | Neutral |
| Risk level | High |
Disclaimer: this material is for educational purposes only and does not constitute financial advice. Cryptocurrencies are highly volatile; always assess your own risk, investment horizon, and do your own research.
