USA TODAY – Recent price action has been zigzag, characterized by a modest rebound after falling over the past two weeks. Market analysis platform Santiment said that Bitcoin’s rebound was short-lived, but there are signs that a bigger rebound may be coming.
Key indicators
Santiment’s analysis points out that negative sentiment persists in the crypto community. This growing impatience is a noteworthy indicator that often signals a potential market turnaround. The Cryptocurrency Fear and Greed Index is currently in fear mode, showing market pessimism.
When the crowd becomes extremely pessimistic, it may set the stage for a price recovery, as it signals that selling pressure may be close to exhaustion.
Another key indicator to watch is Bitcoin’s Relative Strength Index (RSI). The RSI is currently at a low of just 36, indicating that Bitcoin is approaching oversold territory.
RSI is a momentum oscillator that measures the speed and variability of price movements. An RSI below 30 is generally considered oversold and indicates a potential buying opportunity. Although Bitcoin has not yet reached this threshold, getting close could mean a rally is imminent.
What else to look for
In addition to the RSI, other technical indicators such as moving averages (MA) may also provide additional context for Bitcoin prices. Bitcoin is currently trading below the daily 50 moving average at $66,341, and a strong break above this level could signal the start of a new uptrend.
In the short to medium term, it may also be important to focus on macro factors that influence broader market trends. Economic data, regulatory news, and global events can affect the price of Bitcoin. As of writing, BTC is up 0.18% in the past 24 hours to $60.877.
This article was originally published in U.Today
