• Tuesday saw a $7,000 decrease in the price of Bitcoin as markets recovered after the Easter weekend.
• The Bitcoin RSI is at levels last observed at $41,800 for the cryptocurrency.
• The prevention of a prolonged decline is still dependent on the 200-day EMA.

The price of Bitcoin (BTC) is getting closer to the $69,000 mark, which is significant because it blocked the cryptocurrency’s upside potential for years. The BTC RSI indicator is at levels last seen in January, which is concerning.

Pre-halving of the new Bitcoin ATH depends on the breaking of $69K

Within a day, the price of Bitcoin fell from $71,366 to $64,588. Between Monday and the early hours of Tuesday’s US session, positions totaling roughly $700 million were liquidated, resulting in a nearly $7,000 fall.

The dump occurs when sellers gain market control, and the upward trend for Bitcoin vanishes. According to some analysts, the drop is a typical shake-off intended to wipe out the weak hands.

Analysts have noticed that the BTC Relative Strength Index (RSI) has fallen below 50, returning to levels last observed in the final week of January, when the price of Bitcoin was approximately $41,800. More specifically, this occurred right before the surge in inflows into exchange-traded funds (ETFs) began.

Reports show that weekly ETF flows are positive once more after oscillating between a slowing and a more significant number of outflows than inflows. This ought to give Bitcoin bulls hope.

In other news, Kraken Exchange has received 60 million USDT from Tether, the stablecoin (USDT) linked to the US dollar previously held in its Treasury. Additionally, the network has given $100,000 to BTCPay Server so that it may keep up its efforts to make Bitcoin accept payments from anybody. This promotes the digital asset’s uptake.

The rumors that BTC ETFs will be added to the UBS platform—which now manages $3.5 trillion in global money and has a market capitalization of about $98 billion—also support this. The notable change in traditional finance’s acceptance of cryptocurrency is UBS’s addition of Bitcoin ETFs.

It’s a positive step that lowers barriers to entry for affluent people investing in digital assets. When significant players give in to the temptation of cryptocurrency, the adoption curve steepens. The US government has sent Coinbase a potential test transaction for around $2.1 billion, or 30,174 BTC. The Bitcoin is purportedly from the hacking funds of Silk Road.

“Government was simply waiting for Judge Failla to dismiss the SEC’s accusations that Coinbase conducted brokerage activity through Coinbase Wallet before making this move,” said ETF analyst James Seyffart of Bloomberg.

Outlook for bitcoin prices as the BTC RSI falls below 50

The market is tilting to the downside as the BTC RSI fell below the 50 mean level despite the general bullish thesis on the long term. The Awesome Oscillator (AO) indicator, which indicates declining momentum, reinforces what the RSI shows.

If Bitcoin price breaks support offered by the 200-day Exponential Moving Average (EMA) at $65,556, critical since October, the fall could extend to $60,800.

Observe the concealed bearish divergence on the Bitcoin chart, where the price of Bitcoin records higher lows while the RSI records lower lows. If a complete reversal occurs, this raises the possibility of additional declines.

The price of bitcoin would undoubtedly rise if the 200-day EMA held firm as support. If the $69,000 barrier flipped into support, there would be more purchase orders, raising the likelihood of additional upside. Regaining the $73,777 peak would be the first goal in a directional bias like this before there’s an opportunity to record a new peak above the $74,000 level.