The next few weeks will be interesting, according to StockmoneyL. Indeed, its technical analysis shows that a bullish scenario is likely on Bitcoin. This time, he puts forward the RSI, as well as the inevitable figure of the double dip to defend his idea. Despite the uncertainty over bitcoin’s trend, more and more technical analysts, like StockmoneyL, remain bullish.
The same bullish scenario is repeated on Bitcoin (BTC)
The analysis of Stockmoney Lizards is a bit special. It uses bitcoin’s historical movements to consider future price directions. From his point of view, the king of cryptos reproduces the same variations as those of 2018. Consequently, Bitcoin remains bullish despite the recent declines which caused it to lose 70% of its value.
Let’s take a closer look. In 2018, BTC experienced a meteoric decline of 80% after hitting a new high. This will then be followed by a double dip, then a breakout on the oblique trendline. The break of this line signals the beginning of the bullish scenario for bitcoin.
How does the current BTC situation compare to this? Indeed, this crypto reproduces the same movements. Bitcoin is down more than 70% since the new high in 2019. And currently, the double bottom pattern is forming. Thus, there remains only the breakout of the trend line. Once the breakout of this line arrives, it is the beginning of the bullish phase of bitcoin.
Bitcoin is oversold
To support its analysis, Stockmoney also uses the RSI. And according to this technical indicator, the crypto leader is currently oversold. This is a bullish signal that awakens optimism on bitcoin. Recall that the oversold RSI is a very relevant reversal signal. This is because when an asset is oversold, sellers weaken and buyers start buying the DIP. If so, then bitcoin has already reached the lowest level of this bearish period. We could thus envisage a bullish phase for the next few months.
In sum, Bitcoin is still bullish on the bottom. Despite the Great Depression in the crypto market, Stockmoney Lizards remains optimistic about the future of Bitcoin (BTC).
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