The back and forth experienced in the Bitcoin (BTC) market might soon come to an end based on various indicators, according to a crypto analyst under the pseudonym PlanB.
Track live crypto price of 10000+ coins!
PlanB, who is the creator of the Stock-2-Flow (S2F) model, acknowledged:
“Realized Price / Moving Average (RPMA, purple) shows the Bitcoin cycle best. Relative Strength Index (RSI, yellow) is similar but can be misleading at critical times (e.g., 2nd half 2021). The good news: the bear market is almost over. Waiting for RPMA and RSI to start rising again.”
Similar sentiments were shared by market analyst Matthew Hyland, who acknowledged that the monthly RSI was approaching historical lows.
The relative strength index (RSI) is a momentum-based indicator that analyzes overbought and oversold conditions. Therefore, this indicator is almost hitting historical lows in the Bitcoin market, indicating an extremely oversold situation, which is often followed by a price rise.
Another bullish signal has popped up because BTC funding rates are negative. Crypto analyst Ali Martinez explained:
“Bitcoin funding rates remain negative, indicating that short positions are dominant. This is a positive sign for a potential rebound in BTC price.”
PlanB had previously noted that it became crystal clear that Bitcoin’s bull run was over in the first quarter of this year because a full-blown bear market had emerged.
Bitcoin needs to hold the $29K level
For BTC to increase its rebound chances, the leading cryptocurrency ought to hold the $29,000 area.
Martinez pointed out:
“The most significant support level for Bitcoin sits between $29,330 and $30,200, where more than 1.23 million addresses hold nearly 850,000 BTC. BTC needs to hold above this demand wall for a chance of rebounding. Failing to do so can lead to the continuation of the downtrend.”
Bitcoin was hovering around the $29,425 area during the early hours on Sunday, according to CoinMarketCap.
Image source: Shutterstock
Download MAXBIT Android App, Your best source of all crypto news!
Share this article: