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  BTC price "death chop" continues to characterize the aftermath of last week's Bitcoin flash crash. 
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<div class="cointelegraph"> 
 <p>Bitcoin (BTC) stayed stubbornly anti-trend on Aug. 22 as $26,000 became a magnet for intraday BTC <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> action.</p> 
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  <img src="https://cdn.thebittimes.com/images/2023/08/22/e7a3eb6b3b8b3b8ac2774c086f660af1.webp"> 
  <figcaption style="text-align: center;"> <em>BTC/USD 1-hour chart. Source: TradingView</em> 
  </figcaption> 
 </figure> 
 <h2 id="btc-price-death-chop-returns">BTC price "death chop" returns</h2> 
 <p>Data from Cointelegraph Markets Pro and TradingView tracked a third day of sideways performance on BTC/USD.</p> 
 <p>Despite being heavily oversold according to relative strength index (RSI) readings, Bitcoin refused to offer any form of recovery <a rel="noopener noreferrer nofollow" title="bounce" href="https://thebittimes.com/tag/bounce.html">bounce</a> from levels last seen two months prior.</p> 
 <p>Market participants were restless, with popular trader Jelle referring to intraday movements as the “death chop.”</p> 
 <p>“At this stage it feels like a game of chicken to see who is going to make a move to break the chop,” monitoring resource Material Indicators continued.</p> 
 <p>Analyzing liquidity on the Binance BTC/USD order book, Material Indicators noted a broad lack of liquidity, increasing the potential for a sharp move in either direction.</p> 
 <p>“The market is waiting to see if more bid or more ask liquidity is going to be attracted to the range,” it explained to X subscribers. </p> 
 <blockquote>
   “So far, we are seeing small amounts of bid liquidity ladder up from $20k closer to the active trading zone, but no liquidity of any size (new or moved) has been stacked into the range defending price from a Lower Low.” 
 </blockquote> 
 <p>The implications were nonetheless potentially very serious for bulls, with a lower low (LL) apt to risk even $20,000 support going forward.</p> 
 <p>“Needless to say, printing a LL in this TF has macro implications. Printing 2 LLs would push BTC down to sub $20k levels,” Material Indicators concluded.</p> 
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  <img src="https://cdn.thebittimes.com/images/2023/08/22/c99e6bbb7d8a478e8fca2a27d2b9ed1d.webp"> 
  <figcaption style="text-align: center;"> <em>BTC/USD order book data for Binance annotated chart. Source: Material Indicators/X</em> 
  </figcaption> 
 </figure> 
 <h2 id="rsi-strengthens-v-shape-recovery-thesis">RSI strengthens "V-shape recovery" thesis</h2> 
 <p>Zooming out, hope remained that Bitcoin could rescue its overall uptrend.</p> 
 <p><strong><em>Related:&nbsp;Bitcoin is in ‘new bull cycle’ — Metric that bottomed before 70% gains</em></strong></p> 
 <p>In a dedicated YouTube update on the day, Michaël van de Poppe, founder and CEO of trading firm Eight, noted the heavily oversold signals being generated by RSI.</p> 
 <p>On 12-hour timeframes, RSI measured less than 19 at the time of writing — near its lowest levels since the 2018 bear market bottom. Daily levels were similar, reaching their lowest since the March 2020 COVID-19 cross-market crash.</p> 
 <p>“Every time we see such a move, you get a sort of V-shape recovery back up, and it finds an equilibrium on a higher floor,” Van de Poppe said about previous BTC <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> flash crashes.</p> 
 <p>He added that it was “very likely” that Bitcoin could stage a comeback to focus on $26,500 or more next.</p> 
 <figure> 
  <img src="https://cdn.thebittimes.com/images/2023/08/22/e2ba13db583e1b16fbe002c30c707bd8.webp"> 
  <figcaption style="text-align: center;"> <em>BTC/USD 12-hour chart with RSI. Source: TradingView</em> 
  </figcaption> 
 </figure> 
 <p>“Current Bitcoin <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> action reminds me of September 2020 — just before the start of the previous bull market,” Jelle meanwhile suggested alongside a comparative chart. </p> 
 <blockquote>
   “Absorption and slowly grind higher here for a while — and I could see this play out similarly.” 
 </blockquote> 
 <figure> 
  <img src="https://cdn.thebittimes.com/images/2023/08/22/cc6349f19c6ea1abdafd963108569a15.webp"> 
  <figcaption style="text-align: center;"> <em>BTC/USD comparative chart. Source: Jelle/X</em> 
  </figcaption> 
 </figure> 
 <p class="post-content__disclaimer">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. </p> 
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Bitcoin analyst eyes 'V-shape' BTC price bounce as RSI hits 5-year low

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