IU.Today – ‘The recent price movement has been a whipsaw, showing a slight pullback following the lows of the past two weeks. According to Santiment, a market analysis platform, Bitcoin’s comeback has been short-lived, but there are promising signs that a big jump may be around the corner.
Key pointers
Sentiment’s analysis points to a continuing wave of negative sentiment within the crypto community. This growing impatience is a significant indicator, often indicating a potential market reversal. The crypto index Fear and Greed is currently fearful, suggesting pessimism in the market.
When the crowd becomes overly pessimistic, it may set the stage for a price recovery as it suggests that selling pressure may be nearing exhaustion.
Another important 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 an oversold zone.
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 proximity to it may mean that a jump is imminent.
What else can you look for
Alongside the RSI, other technical indicators such as Moving Averages (MA) may provide additional context for the Bitcoin price. Bitcoin is currently trading below its daily SMA 50 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 necessary to look at larger factors affecting trends in the broader markets. Economic data, regulatory issues and global events may affect the price of Bitcoin. At the time of writing, BTC is up 0.18% in the last 24 hours to $60.877.
This article was first published on U.Today
