U.Today – U.Today’s recent price movements have been a whiplash, characterized by a mild rebound following a dip over the past two weeks. According to Santiment, a market analytics platform, Bitcoin’s bounce has been short-lived, but there are promising signs that a more substantial rebound could be on the horizon.
Key indicators
Santiment’s analysis points to a continuing wave of negative sentiment among the crypto community. This growing impatience is a notable indicator, often signaling a potential market turnaround. The Crypto Fear and Greed Index is currently on alert, suggesting pessimism in the market.
When the crowd becomes overwhelmingly bearish, it could set the stage for a price rally as it suggests that the selling pressure may be approaching exhaustion.
Another key indicator to keep an eye on is Bitcoin’s Relative Strength Index (RSI). Currently, the RSI is at a low of just 36, suggesting that Bitcoin is approaching oversold territory.
The RSI is a momentum oscillator that measures the speed and change of price movements. An RSI below 30 is typically considered oversold, indicating a potential buying opportunity. Although Bitcoin has not yet reached this threshold, its proximity could mean a bounce is near.
What else to look for?
In addition to the RSI, other technical indicators such as moving averages (MA) can provide additional context for the price of Bitcoin. Bitcoin is currently trading below its $50 daily simple moving average (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 could also be essential to keep an eye on macro factors that affect overall market trends. Economic data, regulatory news, and global events could all influence the price of Bitcoin. At the time of writing, BTC was up 0.18% over the past 24 hours to $60,877.
This article was originally published on U.Today.
