Bitcoin Tests $33K Level As Painful Sell-Off Continues

Bitcoin is testing new lows near the $33,000 level as traders continue to move out of riskier assets.

Global Sell-Off Continues

While crypto enthusiasts are focused on the huge sell-off in crypto markets, it’s a good idea to zoom out and take a look at the bigger picture in financial markets.

Riskier assets are falling around the globe. S&P 500 futures are down by more than 1% ahead of the U.S. market open, and it should be noted that S&P 500 is already down by roughly 9% from highs that were reached at the start of this year.

Meanwhile, the safe-haven assets like U.S. dollar and gold are moving higher as demand for such assets is growing amid sell-off in riskier assets.

The global market sentiment is bearish, and Bitcoin has no chance to move higher in this environment. For Bitcoin to gain upside momentum, global financial markets need to stabilize.

Bitcoin Remains Oversold, but RSI Is Above Recent Lows

BTC managed to settle below the support level at $35,000 and is trying to settle below the next support which is located at $33,000. RSI is close to the extremely oversold territory, but it has rebounded from recent lows. In this light, there is some room to gain additional downside momentum in the near term. Traders should keep in mind that RSI can reach extreme values in times of panic.

In case BTC manages to settle below $33,000, it will head towards the support at $31,500. A move below this level will open the way to the test of the psychologically important support level at $30,000. If BTC declines below this level, it will head towards the support near $29,000.

On the upside, the previous support at $35,000 will serve as the first resistance level for BTC. If BTC gets above this level, it will move towards the next resistance level at $36,500. A successful test of this level will push BTC towards the resistance at $37,500.