Bitcoin Analyst Predicts Potential Bottom Amid Market Turmoil
A well-known crypto analyst is shedding light on where Bitcoin (BTC) could potentially find a bottom amidst the current market uncertainty triggered by US President Donald Trump’s tariffs.
Rekt Capital, a crypto strategist with a substantial following on the social media platform X, has shared insights with his 542,600 followers regarding the Relative Strength Index (RSI). This technical indicator helps identify when an asset’s momentum is likely to change direction, suggesting that Bitcoin might establish support around $70,000.
According to Rekt Capital, historical data shows that when Bitcoin’s Daily RSI drops below 28, it doesn’t necessarily signify the price bottom. In fact, in the past, the actual price bottom has been between 0.32% to 8.44% lower than the price when the RSI first hit bottom. Currently, Bitcoin is forming its second low, which is 2.79% below the first low. If history repeats itself, a drop of 8.44% below the initial low could see the price bottom out at approximately $70,000.
Additionally, the analyst highlights that a potential bullish reversal for Bitcoin could be indicated if the flagship cryptocurrency successfully breaks and maintains resistance at $78,550. Failure to retest the March lows at $78,550 could result in these levels acting as new resistance in the future. Reclaiming these lows as support is crucial for Bitcoin to shift towards a bullish trajectory and challenge the downtrend.
Moreover, Rekt Capital points out that Bitcoin has entered a trading volume gap on the weekly chart around $70,000, suggesting a need for BTC to revisit this level. As Bitcoin continues to experience downside momentum following a rejection at the early March weekly lows, filling the volume gap in the $71,000-$83,000 range is crucial to address market inefficiencies.
As of the time of writing, Bitcoin is trading at $77,500, reflecting a 1% decrease in the last 24 hours.
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Image Source: Midjourney