Bancor (BNTUSD) Goes Bearish with RSI Indication
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BNTUSD Analysis: Price Prepares to Flip Bearish as RSI Indicates Bearish Divergence
BNTUSD is preparing to turn bearish as the RSI shows a bearish divergence. The bulls in the market have succeeded in driving the price along a rising flag into a mitigation block at the $0.4500 price level. This might be the swing high for the next bearish phase, especially as the market leaves the overbought region.
BNTUSD Significant Zones
Demand Zones: $0.3200, $0.2490
Supply Zones: $0.4500, $0.6940
The mitigation block was created due to the failure of the price to test the $0.4500 price level on November 6, 2022. Should the mitigation block fail to reject the price, this would indicate the presence of the bulls in the market. Following the massive crash in June 2022, prices surged upward two months later into the liquidity void to fill the sell orders therein. BNTUSD continued to descend while also grabbing sell-side liquidity at every swing low. This algorithmic flow continued until the price reached the major support level of $0.3200.
The relative Strength Index (RSI) indicates that it’s past six months since the market crossed the 70.0 level. This indicates that BNTUSD has not reached an overbought region since the bears took over the market. However, the price entered the overbought region as it headed into the mitigation block in January 2023, as a result of the bears’ exit from the market at the $0.3200 support. The mitigation block is therefore expected to reject prices to the downside, either for a retracement or a resumption of the market’s overall trend.
Market Expectation
BNTUSD remains bullish on the four-hour chart. A shift in the market’s structure is needed to confirm that the daily mitigation block will be respected. The four-hour bullish order block may also be mitigated as the price fails to break the old low at $0.3730.
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