Today we've got a couple of thoughts on the BTC/USDT pair. Let’s have a look at how events might play out in the short term based on some popular technical indicators. For our short term forecasts we’ll be using the hourly data from the Binance exchange. ge.
Observing the chart above, over the last few hours we have seen the seven point moving average sit consistently below the twenty five point moving average as the sellers maintain control and keep the price sinking steadily lower. As this trend continues the bears may find it harder to keep control and we will see the price descent grind to a halt. Once the seven point moving average crosses above the twenty five point moving average we can confirm a pause in the bearish activity.
Over the last few hours we have seen the fast MACD line crossover and drop below the slow signal line hinting at the possibility that a decrease in price is on the way. This could be bad news for BTC/USDT and we may see a bearish trend develop in the short term. Once we see the fast MACD line crossover and rise above the slow signal line we can confirm a pause in any downward trends.
We can observe on the above graph that the RSI has now dropped below the 30 point threshold showing that BTC/USDT is now oversold. As a result we could see a rise in price in the near future in response to this as the bulls jump in on a good deal.
So there you have it, with 2 out of our 3 indicators suggesting that a decrease in price is on the way in the short term we could see a new downward move for BTC/USDT.