Bitcoin Price Risks Further Decline After Recovery Rally Stalls

Bitcoin has cemented its third straight monthly loss after September 24 and 26 produced a large sell-off and dragged prices lower, opening up the possibility for another price drop.

Both the weekly RSI and awesome oscillator demonstrate waning interest from bullish buyers leading to expectations of further price declines.

Further price drops are likely, should the bulls fail to reverse the damage done at the end of September.

Further, October has started poorly for traders looking to capture the rebound to $8,511 on Tuesday, as prices were swiftly rejected back below $8,300 at around 02:00 UTC this morning.

The third straight monthly loss has opened the doors for further price declines.

BTC has begun to form a similar monthly pattern to the one produced from February to October, 2018, whereby prices are finding a solid base of support at around $7,780 amid sliding overall interest - as expressed by the lower highs and limited price range of the last 3 monthly candles.

Further, the awesome oscillator, which also measures momentum and captures market cycles, demonstrates BTC's slow and steady decline in perceived value, with prices struggling to rise back above $9,000 post market sell-off.

Given the current weekly trajectory and limited price range, the bears look set to drive prices toward the 50-period moving average at $6,700, coinciding with the descending triangle's measured move, calculated from CoinDesk analysis conducted in early September.

Should prices rise back above $9,400 and then $9,800, that would go a long way to reversing recent market developments and restoring investor confidence moving forward.

Bitcoin image via Shutterstock; charts via TradingView.