The previous week was characterized by a sharp drop in the crypto market. Market cap leader BTC saw a 10% drop, ending the week around $26,500. What if this drop is a buying opportunity for bitcoin (BTC), when a bullish recovery seems imminent? This is precisely what the RSI and Hash Ribbons suggest.
Bitcoin (BTC), a possible recovery according to the RSI?
After a weekly close in the red, bitcoin price is currently hovering around $26,500 during a calmer weekend. Some blame the drop on SpaceX, while others blame it on Evergande’s bankruptcy. In any case, this fall in value could well be an opportunity for investors. Indeed, two key indicators are currently giving buy signals.
First, the fall in Bitcoin (BTC) drove the daily RSI into oversold territory. Historical observation shows that BTC price has regularly seen a significant rebound whenever the daily RSI broke below 30.
According to El Crypto Prof: β Each time the RSI has been below 30, the price of BTC has increased between 28% and 60% thereafter. No reason to be bearish.”
If this same pattern repeats itself, a rise in bitcoin (BTC) to at least $34,000 could be conceivable. In a very optimistic scenario, the parent cryptocurrency could even reach $41,000.
Is it time to buy according to Hash Ribbons?
Additionally, the Hash Ribbons also emit a buy signal with the return of the miners. Indeed, the famous blue dot is currently visible on the daily and weekly scale. This buy signal is of great significance as it marks the end of the capitulation of miners who had reduced their activity due to unfavorable market conditions.
So, bitcoin (BTC) may well see a bullish recovery from the current price level, thus providing a buying opportunity for investors. Especially since BTC is currently at a critical support level: $26,150.
Simply based on these two indicators and the price movement, investors can legitimately expect a rebound to come. However, other analysts believe that it is Bitcoin ETFs that could propel Bitcoin (BTC) into a new bull market.
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