As a seasoned analyst with over two decades of experience in financial markets, I have learned to read trends and interpret indicators like the Relative Strength Index (RSI) with a discerning eye. Having closely followed Bitcoin’s journey since its inception, I must admit that its volatility never ceases to amaze me.
In analyzing Bitcoin, the Relative Strength Index (RSI) serves as a crucial tool, just like for any other cryptocurrency. Given its long history, there’s plenty of data to use this indicator in an attempt to predict future price movements. At present, the RSI is indicating a bearish trend, suggesting that Bitcoin’s price might continue to drop from its current point.
Analyst Says RSI Is Turning Bearish For Bitcoin
crypto expert Alan Santana posted on TradingView a bearish prediction about Bitcoin’s price based on his analysis using the Relative Strength Index (RSI). His assessment indicates that the downtrend may persist, suggesting a possible drop in Bitcoin’s value.
As a crypto analyst, I’ve been observing the Bitcoin weekly chart, and here’s an intriguing finding: The Relative Strength Index (RSI) is signaling a prolonged bearish divergence that spans over three years. This trend is further supported by the RSI chart, which shows a steady descent throughout the year 2024 following a local peak at the start of the year.
Bitcoin’s Relative Strength Index (RSI) has dropped approximately 42% since the start of the year, moving down from a peak of 88 to 50.6 at the time of analysis. Nevertheless, analyst Alan Santana employs a more extended timeframe spanning from 2021 to 2024, revealing a bearish divergence in this indicator. In simpler terms, the value of Bitcoin’s RSI has significantly decreased over the past year, but when observed within a broader timeframe, there appears to be a pattern that could signal a potential downward trend for Bitcoin.
As a crypto investor, I’ve noticed an ominous shift in the market trend. The Relative Strength Index (RSI) indicator recently displayed a lower peak in 2024 compared to its high of 2021, which was at 95. This downward movement in the RSI is significant because it’s the first time since August 2023 that it has shown bearish signs. In simpler terms, this means the market momentum is slowing down, and the Bitcoin indicator hasn’t been this bearish in a year. It’s a reminder to keep a close eye on our investments as the market may be heading for a potential downturn.
How Low Will The BTC Price Drop?
During the examination, the price of Bitcoin had plummeted significantly from around $70,000 to under $60,000, but then showed a slight improvement as I’m writing this. Yet, the crypto expert is not convinced that this is the bottom and advises investors to brace for more falls in value.
Based on my analysis of the current chart trends, I anticipate that the Bitcoin price could potentially dip by approximately 20% from its current level. This would place the price below the $50,000 mark. As a crypto analyst, I estimate this downward movement to find support around $44,000.
If this prediction comes true, Bitcoin’s price could drop back to around $40,000 – a level not seen since early 2024. But here’s the silver lining: According to the crypto analyst, these indicators suggest that we might see even lower prices before we witness new record highs and another growth spurt.
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2024-08-05 18:04