Bitcoin continued to decline on Wednesday, losing 2.5% to trade at $61,600,
partially rebounding from a two-month low. Risk assets are generally under pressure following renewed hostilities between the US and Iran, which have undermined hopes for a peace settlement in the Middle East.
Bitcoin is receiving some support from a slowdown in outflows from spot Bitcoin ETFs after three consecutive weeks of massive institutional sell-offs.
We asked WarrenAI, Investing.com's smart chatbot, to analyze the daily BTC/USD chart. Here are the key findings.
Bearish momentum is dominant: the price is almost 24% below its monthly high and recently tested key support at $60,000. SuperTrend confirms the downtrend ($68,119), with the price 21% below the 200-day moving average ($78,139) and below the Ichimoku Cloud ($67,196–70,959). Large bearish candles are forming on rising volume.
The only argument for a rebound is extreme oversold conditions: the RSI has dropped to 22.3. The nearest support is $60,010 (the February low), a break of which could accelerate the movement to the lower boundary of the Bollinger Bands at $57,065.
On the minute timeframe, the signal is "Strong Buy," but from the 30-minute chart all the way up to the monthly chart, "Strong Sell" dominates. Summary: "Strong Sell": Technical indicators signal "Strong Sell," moving averages signal "Sell."
Conclusion
The trend remains downtrend, with the key support level at $60,000. A break above this level will open the way to $57,000 and below. A reversal would require a return above $68,100, which is currently unlikely. An oversold RSI reading could trigger a short-term rebound, but in strong trends, extreme oscillator readings are not a reliable buy signal—the market can remain oversold longer than it appears.