Bitcoin
Key Indicators and What Else to Look for by U.Today
U.Today – Bitcoin’s recent price action has been a whiplash, characterized by a slight recovery after a dip over the past two weeks. According to Santiment, a market analytics platform, Bitcoin’s recovery has been short-lived, but there are promising signs that a more substantial recovery could be on the horizon.
Key indicators
Santiment’s analysis points to an ongoing wave of negative sentiment among the crypto community. This growing impatience is a notable indicator, often signaling a potential turnaround in the market. The Fear and Greed crypto index is currently in fear, suggesting market pessimism.
When the crowd becomes overwhelmingly bearish, it can set the stage for a price rally as it suggests that selling pressure may be nearly exhausted.
Another important indicator to watch is Bitcoin’s Relative Strength Index (RSI). Currently at a low of just 36, the RSI suggests that Bitcoin is approaching oversold territory.
The RSI is a momentum oscillator that measures the speed and change in price movements. An RSI below 30 is typically considered oversold, indicating a potential buying opportunity. While Bitcoin has not yet reached this threshold, its proximity could mean a recovery is near.
What else to look for
Along with the RSI, other technical indicators such as moving averages (MA) can provide extra context for Bitcoin’s price. Bitcoin is currently trading below its daily 50 SMA at $66,341, and a strong move above this level could signal the start of a new uptrend.
In the short to medium term, it may also be essential to keep an eye on macro factors that affect broader market trends. Economic data, regulatory news and global events can influence the price of Bitcoin. At the time of writing, BTC was up 0.18% in the last 24 hours to $60,877.