Technical signals buy for Bitcoin; What’s the next move?
Bitcoin (BTC) has experienced significant growth since the turn of the year; however, some of those gains have been lost in recent weeks as the price has fallen from over $30,000 to just over $26,000, leaving many in the bullpen for future price action.
Despite the price drop, crypto analyst Ali Martinez has identified a buy signal on Bitcoin’s 4-hour chart. After seeing a developing relative strength index (RSI) bullish divergence pattern, Martinez said BTC could rise as high as $27,570, suggesting a potential upside of 4.5% from current levels.
However, he noted that BTC could also swing either way, depending on whether it can hold above the current $26,000 support level, the crypto expert added in a tweet on Friday 12. May. If it doesn’t, Bitcoin could fall 4.49% to $25,200.
“TD Sequential is showing a buy signal on #Bitcoin 4-hour chart, while an RSI bullish divergence is developing. If $BTC can hold above $26,000, expect a rally to $26,860 or $27,570. Failure to hold above this support level could trigger a decline to $25,200 for #BTC.”
– wrote Ali Martinez in the tweet.
TD Sequential refers to a well-known technical analysis (TA) instrument used to find the exact moment of trend exhaustion and possible price reversal.
Why is Bitcoin down at the moment?
Another well-known crypto trading expert, Michael van de Poppe, said that Bitcoin is “showing signs of weakness” at the moment, while altcoins continue to recover from a significant setback. He believes BTC needs to retake the $26,500-$26,800 price range before going long. Otherwise, the cryptocurrency could plunge to $25,000.
At press time, Bitcoin stood at $26,362, down 3.6% in the last 24 hours. The decline comes amid a broader market sell-off triggered by a number of factors. One of these is falling Bitcoin fees which have reached sky high levels recently. This decline is now leading to delayed sales from market participants.
Apart from that, the recent support from the lower than expected inflation report may have also contributed to the sell-off, despite the initial push higher from cryptocurrencies right after the inflation data was released.
Despite the recent price collapse, Bitcoin is still up nearly 60% since the start of 2023. The world’s number one cryptocurrency saw a strong rebound this year after a disastrous 2022 that sent crypto prices to multi-year lows.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
