Bitcoin’s Key Technical Indicator Turns Green; More gains ahead?
After weeks of rallying to briefly regain the $24,000 spot, Bitcoin’s (BTC) price is undergoing a correction largely linked to new regulatory concerns in the United States. Amidst the uncertainty, investors look at various technical indicators that may suggest what to expect next.
Especially in one chirping February 12, cryptanalyst of the Twitter pseudonym Elcryptoprofnoted that one of Bitcoin’s most important technical indicators, the Rainbow The Relative Strength Index (RSI), has turned green for the first time after an extended correction.
This is a significant development for Bitcoin, as the trend suggests that the long-term momentum is likely to be bullish. According to the expert’s analysis, similar green crossovers have previously marked the beginning of significant bull runs.
For example, the green crossover of 2012 marked the start of a bull run, while the green crossover of 2019 also ushered in the beginning of the last great rally. On the other hand, Elcryptoprof pointed out that the trend in 2015 resulted in a fakeout before a major rally. In this line, it is worth noting that past results are not indicative of future results, and it remains to be seen whether Bitcoin will experience a similar price increase this time around.
Bitcoin Rainbow RSI is a modification of the main TSI technical indicator similar to the Rainbow Ribonacci which is characterized by the Rainbow Ribbon of Fibonacci period and levels.
Bitcoin price analysis
Bitcoin has since dipped below the $22,000 level, but it remains in the green zone on the yearly chart. At press time, Bitcoin was trading at $21,847.
In fact, the latest correction follows the recent move by the Securities Exchange Commission (SEC) to crack down on betting. In particular, the regulator reached an agreement with the crypto exchange Kraken, which will stop betting services.
However, crypto trading expert and analyst Michaël van de Poppe suggested that the Bitcoin correction is minor, linking it to SEC ‘FUD’ which has resulted in several investors exiting the market.
“A week ago it was $24,500 and people were rushing to get in. Right now the price is at $21,700 and because of some SEC FUD, people will rush out. Delete context. The price is low, undervalued and will be a lot higher in the future Use these prices to accumulate,” he so in a tweet on February 11.
As Bitcoin faces bearish pressure, investors will look for key events that are likely to affect macroeconomic factors. In the coming week, investors are focused on consumer price index data, retail sales and Empire State update and producer price index.
Interestingly, the bearish trend also appears in upcoming Bitcoin price forecasts. In this line, as reported by Finbold, the machine learning algorithm at Price predictions indicated that the virgin crypto is likely to trade at $21,632 on February 14, 2023.
Bitcoin Technical Analysis
Meanwhile, Bitcoins measure one-day TradingView remain bullish. A summary of the technical analysis is for ‘buy’ sentiment at 13, while moving averages also support the same sentiment gauge at 8. Elsewhere, oscillators are for ‘buy’ at 5.
As Bitcoin appears to be facing stagnation, overall market sentiments remain uncertain.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
