Indicators Point to Potential Bitcoin Price Rebound Up to 60%
Happycoin.club – After a sharp sell-off that rocked the entire cryptocurrency market, Bitcoin (BTC) is showing signs of a potential recovery. Analysts point to a combination of technical indicators and historical patterns as reasons to be optimistic about the future price action of the cryptocurrency.
In particular, crypto analyst El crypto prof noted that the recent sell-off pushed the Relative Strength Index (RSI) to its lowest level in 20 months, indicating potential oversold.
Bitcoin price analysis chart. Source: Trading View
He also wrote that the price of BTC has reached a critical support line, which has acted as resistance for almost a year. What is particularly revealing is the historical correlation between Bitcoin’s RSI drop below 30 and subsequent price movements.
According to the analyst, every time the RSI falls below this threshold, after that, the price of bitcoin rises in the range from 28% to 60%.
After the recent correction in the price of bitcoin, during which the asset again reached the $25,000 mark, investors and traders may be interested in this model, as it implies a significant upward price jump.
Currently, Bitcoin has managed to recover above $26,000 and is trading at $26,171, showing a daily gain of just under 1%. However, on the weekly chart, the value of BTC has fallen by more than 10%.
Seven-day bitcoin price chart. Source: CoinGecko
TradingView’s technical analysis summary for the asset suggests a sell sentiment score of 14, which equates to a 13 moving average score. The oscillators point to a buy sentiment score of 6.
Bitcoin technical analysis chart. Source: Trading View
It is important to note that in addition to statistics, the price of bitcoin depends on a number of factors, including macroeconomic trends and changes in the regulatory framework.
Read the original article on Happycoin.club
2023-08-20 17:07:00
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