CNBC contributor and “The Bear Traps Report” founder Lawrence McDonald has noted that one Bitcoin is now equivalent to 20 ounces of bullion, which is a significant decline from a peak of 37 ounces that was recorded in August.
McDonald believes that the flagship cryptocurrency will be in the buy zone when the XBT/XAU ratio will reach 15 ounces.
As reported by U.Today, the relative strength indicator (RSI) is also flashing oversold conditions on Bitcoin’s weekly chart now that it has dipped below 40.
Earlier today, Bitcoin slipped to the $37,000 level earlier today, extending its bearish streak.
Galaxy Digital CEO Mike Novogratz recently tweeted that cryptocurrencies would remain under pressure since they keep trading in tandem with the U.S. equities market. The correlation between the Nasdaq and Bitcoin recently hit yet another all-time high.
Trader Josh Olszewicz has tweeted that Bitcoin has entered a weekly Ichimoku cloud for the first time since the start of the pandemic, which he views as a troubling sign for bulls.
$BTC— Josh Olszewicz (@CarpeNoctom) January 21, 2022
two troubling things here for the bulls
1) entering weekly Cloud for the first time post-pandemic
2) active H&S potentially playing out, measures to S1 yearly pivot @ $26k pic.twitter.com/1TQevhB3G8
Fairlead Strategies' Katie Stockton recently noted that $37,361 will act as a major support level for Bitcoin. If the flagship cryptocurrency drops below the aforementioned price point, it will likely keep plunging all the way back to the $30,000 level.
The analyst believes that Bitcoin could briefly drop below the support before staging a recovery. A failure to regain bullish momentum will not bode well for altcoins, according to Stockton.