A technical momentum indicator, which was used by the analyst to accurately predict Bitcoin’s Q1 2024 correction, suggests that BTC may be close to printing its local bottom.
Rekt capital, a pseudonymous analyst on social media platform X tells 542,00 of his followers that Bitcoin’s daily relative strength indicator (RSI), has fallen into an oversold zone.
Traders pay close attention to the RSI, as it is often able to signal reversals in trend.
Crypto strategists say that, since November 2022 Bitcoin rallies have been strong each time RSI levels dropped below oversold on a daily timeframe.
When Bitcoin’s price crashed to the $70,000s, the Daily RSI was equal to 2022 Bear Market RSI (RSI=23.93).
In this cycle, the only time that the Daily RSI was lower than 18.28 is in August 2023.
Throughout the cycle, every visit to RSI below 25 resulted in a positive trend reversal over time.”
Rekt Capital says that historical data indicates Bitcoin could find a bottom somewhere between $78,000 to $71,700.
Bitcoin has reached a new lower high on the Daily.
You can’t deny that.
Throughout this cycle, Bitcoin has always been at 28 on the RSI…
Bitcoin’s price will either be at its lowest point or between -2 to -8 percent away.
The trader believes that BTC is following the path of layer-1 protocol Cronos. Rekt Capital believes that CRO is in the process of ending its downward trend with a two-bottom pattern.
It’s fascinating to note that BTC has been trying to create a Double Bottom formation.
Bitcoin is leading CRO, which has managed to break out of its Double Bottom.
Altcoins in different phases are experiencing their Double Bottoms.”
Double-bottom structures are traditionally seen as bullish patterns, as they indicate that an asset has reached a new price floor. It is now preparing for a sudden upward surge.
According to the chart of the trader, it appears that CRO is now trading at $0.08 and has broken through the resistance pattern. CRO was trading for $0.80 at the time this article was written.
Bitcoin was trading at $82,207 as of the time this article is written, which represents a drop of over 4% from yesterday.
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Sources of Images include Pixabay Creative Commons & Midjourney
The post Bitcoin Flashing Bullish reversal signal, according to Trader that Nailed 2024 pre-Halving BTC correction may be updated as new information becomes available.
