Bitcoin Under $70000 with Oversold Signals – Time to Buy?

FxNews—Bitcoin broke below the 100-period simple moving average and the ascending trendline, currently trading at approximately $68,320.

Bitcoin Technical Analysis – 3-October-2024

Meanwhile, the Stochastic Oscillator signal is oversold, meaning BTC/USD has the potential to consolidate near the upper resistance level. This idea is backed by the Fair Value Gap formed in the 4-hour chart.

Furthermore, the Awesome Oscillator histogram is red and below the signal line, meaning the bear market should prevail.

Overall, the technical indicators suggest that while the primary trend has shifted to bearish, BTC/USD can consolidate before the downtrend resumes.

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Bitcoin Technical Analysis – 3-October-2024

From a technical perspective, the immediate resistance is at the 23.6 % Fibonacci resistance level at $70,000. The outlook of the BTC/USD pair remains bearish as long as the price is below that level and the 50-period SMA.

In this scenario, the next bearish target could be the %50 Fibonacci retracement level after a minor consolidation.

Please note that the bearish strategy should be invalidated if BTC/USD closes and stabilizes above the 23.6% Fibonacci retracement level at $70,000.