Bitcoin (BTC) bucked the trend stubbornly on Aug. 22, with $26,000 acting as a magnet for BTC’s intraday price action.

BTC/USD 1-hour chart. Source: TradingView

BTC Price “Death Slash” Returns

Data from Cointelegraph Markets Pro and transaction view Tracking BTC/USD sideways for the third day in a row.

Despite being heavily oversold, Bitcoin is refusing to stage any sort of recovery rally from levels seen two months ago, according to relative strength index (RSI) readings.

Market participants restless, popular trader Yeller alleging The intraday trend is called “death cut”.

“At this stage, it feels like a ‘chicken’s game’ to see who will make the move to break the stick,” said the monitoring resource material indicator. explain.

Material Indicators analyzed the liquidity of Binance’s BTC/USD order book and found a general lack of liquidity, increasing the likelihood of large moves in either direction.

“The market is waiting to see if it will attract more bids for liquidity or more inquiries,” it explained on X (formerly known as Twitter).

“So far we’ve seen a small amount of liquidity bid up from near the active trading area of ​​$20K, but no liquidity (new or transferred) of any size has been piled up to defend the price range from the lower lows Inside.”

Still, this could be very serious for the bulls, as a lower low (LL) could even threaten the $20,000 support level ahead.

“Needless to say, printing LLs in this TF has macro implications. Printing 2 LLs will bring #BTC down to sub-$20k levels,” concluded Material Indicators.

BTC/USD order book data for Binance Annotated Chart. Source: Material Indicators/X

RSI reinforces ‘V-shaped recovery’ theory

Looking ahead, Bitcoin remains poised to salvage its overall uptrend.

Related: Bitcoin Is In ‘New Bull Cycle’ – Metrics Bottom Before 70% Rally

In a YouTube feature update on August 22, Michaël van de Poppe, founder and CEO of Trading Company 8, stated: famous Severely oversold signal generated by RSI.

On the 12-hour time frame, the RSI is below 19 at the time of writing, near its lowest level since the 2018 bear market bottom. Daily levels were similar, hitting the lowest level since the COVID-19 crash across markets in March 2020.

Van de Poppe said of the previous BTC price flash crash: “Every time we see a move like this, there is some sort of V-shaped recovery and it finds its balance at a higher level.”

He added that Bitcoin is “likely” to make a comeback, with $26,500 or higher next in focus.

BTC/USD 12-hour chart with RSI. Source: TradingView

“Current #Bitcoin price action reminds me of September 2020 – just before the last bull market started,” Jelle also said suggestion There is also a comparison chart next to it.

“Over a period of time, absorbing and slowly moving higher — I could see similar results.”

BTC/USD comparison chart. Source: Jelle/X

This article does not contain investment advice or recommendations. Every investment and transaction involves risk, and readers should do their own research when making a decision.