Following an unsuccessful attempt to break through the $30,000 barrier, Bitcoin retraced $28,400 level, leading to a flurry of liquidations for both long and short positions. Moreover, the recent misinformation regarding the US Securities and Exchange Commission’s approval of Blackrock’s Bitcoin Exchange-Traded Fund (ETF) has disrupted the bullish trajectory, introducing new bearish indicators into the Bitcoin market.
The RSI Indicator’s Warning
Ali Martinez, a renowned trader and crypto analyst, suggests selling Bitcoin based on its 4-hour chart Relative Strength Index (RSI) indicator. His trading strategy advises selling Bitcoin when the RSI exceeds 74.21 and buying when it drops below 30.35. Currently, the RSI of Bitcoin stands at 74, which is alarmingly high. This is especially concerning since, on October 16, following the spread of the false news, the RSI shot up to 82.83.
History of Bitcoin Retracements
Noted crypto analyst Rekt Capital has highlighted Bitcoin’s historical retracements about 180 days before halving events. According to his findings, Bitcoin experienced a -25% retracement in 2015/2016, approximately 180 days before the halving. Similarly, in 2019, Bitcoin retraced by -38% around the same period before the halving. While Rekt Capital identifies as a macro bull, he concedes that historical data favors bearish trends before halving events.
Current Market Conditions and Future Predictions
As of now, Bitcoin is trading at $28,400, indicating a profitable position across all time frames. Despite the earlier bearish factors, Bitcoin has recorded profits of 3.7%, 4%, and 7% over the seven, fourteen, and thirty-day periods, respectively. However, the sustainability of Bitcoin’s current price level remains uncertain, as it remains to be seen whether it will withstand potential retracements soon.
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Featured image from Shutterstock, chart from TradingView.com Tags: bitcoin, Bitcoin chart, Bitcoin Halving, Bitcoin Halving Cycles, Bitcoin news, bitcoin price, Bitcoin Price 4-hours chart, Bitcoin Price action, Bitcoin Price Decline, bitcoin price news, bitcoin signals, bitcoin technical analysis, bitcoin trading, btc, btcusd, btcusd price, BTCUSDT, crypto, cryptocurrency
