The price of Bitcoin has once again fallen below the $110,000 mark due to a decline in the 30-day moving average hitting a low not seen since 2018. Analysts point to significant selling pressure in the market.
Bitcoin Price Analysis
On August 27, Bitcoin dropped from its previous peak of $117,279 to $109,526, marking a short-term crash. The price is currently hovering around $110,000.
The 30-day moving average has reached its lowest level since May 2018, indicating substantial selling pressure in the market.
Reasons for the Brief Crash
Just before the crash, the Relative Strength Index (RSI) peaked above 70, indicating that Bitcoin was in the overbought zone. This likely triggered profit-taking and exits from short-term traders, accelerating the drop.
The initial rally driven by the Fed's Jackson Hole speech had run out of steam, leading to declining prices. Large sell-offs from whales also fueled the flash crash, triggering mass liquidations across the market.
Current Market Situation
Despite the recent drop, Bitcoin shows signs of recovery as the price now exceeds $110,000. The RSI indicates strong upward momentum but also suggests potential overbought conditions, which may lead to a short-term pullback.
The Bitcoin market remains uncertain, with potential for short-term fluctuations, yet signs of recovery are also emerging.
