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Key indicators and what else to look for
Tom Wabold Olajide
Although Bitcoin has not yet reached this threshold, its closeness could mean that the rebound is near
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BitcoinRecent price movements have been whipsaw-like, with a slight rebound after a decline over the past two weeks. According to Most Holya market analysis platform, Bitcoin’s rebound was short-lived, but there are promising signs that a more substantial rebound could be on the horizon.
Key indicators
Santiment’s analysis indicates a continuing wave of negative sentiment in the cryptocurrency community. This growing impatience is a notable indicator, often signaling a potential market reversal. The crypto Fear and Greed index is currently at fear, suggesting market pessimism.
When the crowd becomes overly pessimistic, it could set the stage for a price rally, as it suggests that selling pressure may be close to exhaustion.
Another key indicator to watch is Bitcoin’s Relative Strength Index (RSI). Currently sitting at a low of just 36, the RSI suggests that Bitcoin is approaching oversold territory.
The RSI is a momentum oscillator that measures the speed and change of price movements. An RSI below 30 is generally considered oversold, indicating a potential buying opportunity. Although Bitcoin has not yet reached this threshold, its closeness could mean that a rebound is near.
What else to look for
In addition to the RSI, other technical indicators such as moving averages (MA) can provide additional context for the Bitcoin Price. Bitcoin is currently trading below its 50 daily SMA at $66,341 and a strong move above this level could signal the start of a new uptrend.
In the short to medium term, it may also be essential to keep an eye on macro factors that influence broader market trends. Economic data, regulatory news, and global events could impact the price of Bitcoin. At the time of writing, BTC was up 0.18% over the past 24 hours at $60,877.
About the author
Tom Wabold Olajide
Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and trading forecasts on estimated market trends. Tomiwabold holds a bachelor’s degree from the University of Lagos.