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Bitcoin's recent price movements have been a whipsaw, characterized by a mild rebound following a dip over the past two weeks. According to Santiment, a market analytics platform, Bitcoin's rebound has been short-lived, but there are promising signs that a more substantial bounce might be on the horizon.
Key indicators
Santiment's analysis points to a continued 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 at fear, suggesting market pessimism.
When the crowd becomes overwhelmingly pessimistic, it could set the stage for a price recovery as it suggests that selling pressure may be nearing exhaustion.
Another key indicator to watch is Bitcoin's Relative Strength Index (RSI). Currently sitting at a low of just 36, the RSI suggests that Bitcoin is nearing 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 reached this threshold yet, its proximity to it could mean a bounce is close.
What else to look for
Alongside the RSI, other technical indicators such as Moving Averages (MA) may provide extra context for the Bitcoin price. Bitcoin is currently trading below its daily SMA 50 at $66,341, and a strong move above this level could signal the start of a new uptrend.
In the short-to-mid term, it might also be essential to keep an eye on macro factors impacting broader market trends. Economic data, regulatory news and global events might influence Bitcoin's price. At the time of writing, BTC was up 0.18% in the last 24 hours to $60.877.
Dan Burgin
Alex Dovbnya