U.Today – Recent price action has been a whiplash, with a gentle bounce following the declines of the past two weeks. According to market analysis platform Santiment, Bitcoin’s bounce was short-lived, but there are promising signs that a more sedate bounce could be on the horizon.
Key Indicators
Santiment’s analysis points to a sustained wave of negative sentiment among the crypto community. This growing impatience is a noteworthy indicator, often signaling a potential market turnaround. The Fear and Greed cryptocurrency index is currently in a fear state, suggesting market pessimism.
When the crowd becomes overwhelmingly cynical, this can set the stage for a price rebound as it suggests that selling pressure may be nearing exhaustion.
Another key indicator to watch is Bitcoin’s Relative Strength Index (RSI). It is currently sitting at just 36, suggesting that Bitcoin is approaching oversold territory.
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 rebound is imminent.
What else to look for
In addition to the RSI, other technical indicators such as moving averages (MAs) can provide additional context for the Bitcoin price. Bitcoin is currently trading below its 50-day SMA at $66,341, and a powerful move above this level could signal the start of a up-to-date uptrend.
In the miniature and medium term, it may also be necessary to keep an eye on macroeconomic factors influencing broader market trends. Economic data, regulatory news, and global events can impact the price of Bitcoin. At the time of writing, BTC is up 0.18% in the last 24 hours to $60,877.
