Bitcoin Forms Bullish Signal That Led To At Least 60% Jump Last 3 Times
25 Juin 2024 - 5:00AM
NEWSBTC
An analyst has pointed out how an indicator is forming a signal for
Bitcoin that has proven to be quite bullish for the asset during
the past two years. Bitcoin Daily RSI Has Dipped Into The Oversold
Territory In a new post on X, analyst Ali Martinez has discussed
the latest trend forming in the Relative Strength Index (RSI) for
Bitcoin. The RSI is a popular technical analysis indicator that
keeps track of the speed and magnitude of recent changes in BTC’s
price. This metric represents its value on a scale from zero to a
hundred. Related Reading: Bitcoin Whales Switching To Risk-Off Mode
After $61,000 Crash When the indicator has a value lower than 30,
the cryptocurrency is oversold right now. Such a trend may lead
towards a bottom for the asset’s price. On the other hand, the
metric above the 70 mark suggests the coin could be overbought
currently and, hence, potentially due to a reversal towards the
downside. Now, here is the chart shared by Ali that shows the trend
in the daily RSI for Bitcoin over the last couple of years: As
displayed in the above graph, the daily RSI has recently observed a
plunge for Bitcoin, which now sits under the 30 level. Thus, it
would appear that BTC is turning oversold, at least according to
this metric. This development in the indicator has come as BTC has
seen a crash in the past 24 hours that has taken its price below
the $60,000 level for the first time since the start of May. The
latest plummet into the underbought region is the first time the
indicator has dipped into this region since August of last year.
Interestingly, the signal eventually led to a 197% rally for
cryptocurrency. Bitcoin also enjoyed a similar bullish effect
during the other two occurrences of this trend from the past two
years. The November 2022 signal resulted in a 60% surge, while the
March 2023 one led to an increase of more than 62%. As the daily
RSI has once again dropped into this territory for the asset, it’s
possible that its price could end up seeing a return of bullish
momentum in the coming future. The analyst notes that this could
make the current dip a prime opportunity to buy. In the scenario
that BTC does observe a rally arising out of this pattern similar
to the previous instances, a run equal to the smallest surges (60%)
would mean the cryptocurrency would rise to a new high of $96,000.
Related Reading: Bitcoin Slips Under $64,000: Here’s Where The Next
Support Is Given this trend in the daily RSI, It remains to be seen
how the price of the cryptocurrency develops from here. BTC Price
Bitcoin had slipped under $60,000 earlier in the day, but the asset
has since seen a small rebound to $60,200. Featured image from
Dall-E, charts from TradingView.com
Bitcoin (COIN:BTCUSD)
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