“Sluymer refers specifically to an intraday chart of bitcoin, which shows the cryptocurrency has returned to a key support level it hit in June and again in mid-July. Not only that, but Sluymer also points out that the relative strength index (RSI) of bitcoin indicates it is now ‘very oversold,’ which may prove to be a buying opportunity for the cryptocurrency, but investors need to be careful,” according to CNBC.
Year-to-date, bitcoin is lower by more than 40% and a move below the $7,400 area could trigger more selling pressure.
“This means that should bitcoin drop below the $7,400 level, Sluymer sees a possible plunge back to mid-July lows,” reports CNBC.
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