- An analyst highlighted Bitcoin’s oversold RSI, historically preceding surges of 60%, 63%, and even 198%, suggesting a potential buying opportunity.
- Bitcoin’s RSI dropped below 30, hinting at possible bottoms and great buying opportunities with prices under $60,000.
- Historical RSI dips preceded massive rallies; such a scenario could send the price of bitcoin to a new high of $96,000.
One analyst has commented that a bullish signal for Bitcoin, which has remained reasonably accurate over the past two years, has just been triggered. On October 6, following the price decline to $6,400, the daily RSI of Bitcoin touched the oversold region, points out Ali Martinez. This has gone chiefly ahead of price surges in the past.
RSI Shows Possible Bottom
Ali Martinez commented in response to X, “The daily RSI for Bitcoin has reached oversold territory three times in the past two years.” Martinez added that each of those instances was followed by price hikes of sixty percent, sixty-three percent, and eighty-nine percent, respectively. Martinez insinuates that it is now promising to buy the dip with Bitcoin trading below $60,000 and its RSI well within the oversold zone.
One of the most popular forms of technical analysis indicators is the RSI, which measures the magnitude and the velocity of price changes. This reading will also vary between zero and one hundred. The reading below thirty on this vary reflects that the security is oversold and probably is nearing its bottom.
On the other hand, readings above 70 indicate that it is overbought and could be due for a downward reversal. Bitcoin’s RSI broke below 30 daily, suggesting it is now oversold. That follows a crash in price over the last 24 hours, which pulled Bitcoin down to below $60,000 for the first time since early May. Geometrically, this showed an oversold condition that can further define a possible price bottom of Bitcoin.
The last time this happened with the RSI was just a little more than a year ago, in August of last year. That eventually led to a 197% Bitcoin rally. Other than that, similar bullish effects occurred during the other two instances in the past two years of cryptocurrency: November 2022 with a surge of 60%, followed by March 2023 at a hike of 62%.
Prime Buying Opportunity
Again, with the RSI dipping into oversold territory daily, there’s the potential for the price of Bitcoin to see a bullish reversal. Martinez believes that this current dip is an opportunity to buy. Should Bitcoin sustain or follow similar patterns as it did in the past, he indicated a 60 percent Surge could push its price to an all-new high of $96,000.
Briefly slipping below $60,000, BTC has since recovered to $60,200. The RSI signal could mean that bullish momentum is on the verge of returning. One point is plotted with the extremes in the RSI dipping into oversold territory. Hefty price rallies have typically followed this pattern. Investors could see this as a buying opportunity, and the price could increase substantially over the next few days.
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