- Bitcoin’s Relative Strength Index (RSI) has jumped to 40%, according to crypto research platform 10x Research. This could indicate potential rallies for the flagship cryptocurrency.
- Despite a possible “line in the sand” at the $62,000 mark, Bitcoin has already broken above this level, suggesting a continued bullish sentiment.
- However, 10x Research suggests that Bitcoin would need a catalyst for a sustained rally, with the research firm’s trend model currently indicating a downtrend.
Bitcoin’s RSI jumps to 40%, hinting at potential rallies. However, a sustained rally may require a catalyst, according to 10x Research.
Bitcoin’s Potential Rally
10x Research’s newsletter, “Fake Dip?”, highlights that Bitcoin has historically seen potential rallies when its RSI drops to 40%. This suggests that Bitcoin could rally following its recent decline. However, a “line in the sand” at the $62,000 mark could prevent this rally. Despite this, Bitcoin has already surpassed this level, indicating continued bullish sentiment.
Need for a Catalyst
The research platform suggests that Bitcoin would need a catalyst for a sustained rally. They point to four bullish events that have previously triggered a parabolic run for Bitcoin after breaking a vital support level. These include Treasury Secretary Janet Yellen’s bid for uncapped deposit insurance, BlackRock’s application for a Spot Bitcoin ETF, Franklin Templeton’s similar filing, and when US Core PCE dropped below 3.0%. Andrey Stoychev, Head of Prime Brokerage at Nexo, shares this sentiment, stating that without a catalyst, Bitcoin will likely continue to trade around the $67,000 range.
Potential for New Highs
Crypto analyst Mikybull Crypto suggests that Bitcoin will still hit new highs. He believes that the current price action is designed to create “more fear across the market and then bottom for upward continuation.” Ali Martinez, another crypto analyst, suggests that the bull run is far from over, with Bitcoin potentially over 500 days away from hitting its market top for this cycle. He predicts a new all-time high (ATH) of $92,190 if Bitcoin breaches the resistance level of $69,150. PlanB, a well-known crypto analyst, has also stated that Bitcoin hitting $100,000 this year is “inevitable.”
Conclusion
While Bitcoin’s RSI jumping to 40% could hint at potential rallies, a sustained rally may require a catalyst. Despite the current downtrend indicated by 10x Research’s trend model, there is still optimism for Bitcoin hitting new highs. However, it remains to be seen what catalyst could trigger such a rally.
