In his latest video analysis titled “BITCOIN’S One Indicator Signaling LAST Major Dip” Dan Gambardello, a renowned cryptocurrency analyst with 370,000 subscribers on YouTube, delves into Bitcoin’s latest price action to predict what could potentially be the final major dip. After falling to $60,000 on Wednesday, fear of another deeper price crash has gripped the Bitcoin market.

Why This Could Be the Last Step Down for Bitcoin

Gambardello emphasizes the importance of daily and six-hour charts. On the daily chart, Bitcoin is currently testing its 50-day moving average, a level that often serves as a litmus test for short-term market sentiment.

However, the analyst’s main focus is on the Relative Strength Index (RSI) on the six-hour chart, a momentum oscillator used to measure the speed and change of price movements, which has reached an oversold level. According to Gambardello, the RSI reaching an oversold area is traditionally viewed as a bullish signal, potentially indicating that the current price decline is nearing its end.

“I think the bottom is near. There may be some kind of capitulation in the very compact term, but I think there could be a very robust rebound after that,” Gambardello noted, suggesting that despite the immediate market turmoil following news of the Israel-Iran conflict, fundamentals point to a possible solid economic recovery.

Via X Gambardello added: “There’s nothing like a six-hour RSI sell-off at the start of bull season. It also works great during bull season.”

This claim is based on his analysis of past market behavior under similar conditions, which reinforces the cyclical nature of Bitcoin market dynamics. Comparing historical data, Gambardello highlights Bitcoin’s behavioral trends in previous Octobers, noting a pattern of initial declines followed by robust recoveries towards the end of the month.

“It will be green in October. Always [like this] with dip. People are just going crazy. I guess that’s it, but it gives us some time. All these red candles will appear in October. Give us another week, maybe even two, and we could get the pump and break into the positive territory by the end of October,” says Gambardello.

Digging deeper into the analysis, Gambardello discusses potential scenarios around Bitcoin’s bottom trendline, a recurring support level over the past six months. He speculates that if Bitcoin approaches this trendline again, it could effectively serve as a solid support level, potentially marking the last significant deterioration before a sustained uptrend.

It is worth noting that one last touch of the trend line can reduce the BTC price by up to $50,000. However, Gambardello believes this is a less likely scenario as the 6-hour RSI has already reached oversold territory while BTC is currently bouncing off the 50-day moving average.

Moreover, Gambardello alludes to Bitcoin’s performance in previous years, followed by halvings, which are usually followed by bull markets, as was the case in 2016 and 2020. Gambardello suggests that this year could follow a similar trajectory. “This is the year of halving. We saw what happened in the Halving years of 2020 and 2016 in October. Will it happen again?”

At the time of publication, Bitcoin was trading at $60,899.

Featured image created with DALL.E, chart from TradingView.com