Bitcoin analyst eyes ‘V-shape’ BTC price bounce as RSI hits 5-year low

Bitcoin (BTC) stayed stubbornly anti-trend on Aug. 22 as $26,000 turned a magnet for intraday BTC value motion.

BTC value “loss of life chop” returns

Information from Cointelegraph Markets Professional and TradingView tracked a 3rd day of sideways efficiency for BTC/USD.

Regardless of being closely oversold, in keeping with relative power index (RSI) readings, Bitcoin refused to supply any type of restoration bounce from ranges final seen two months prior.

Market contributors had been stressed, with standard dealer Jelle referring to intraday actions because the “loss of life chop.”

“At this stage it appears like a sport of rooster to see who’s going to make a transfer to interrupt the chop,” monitoring useful resource Materials Indicators said.

Analyzing liquidity on the Binance BTC/USD order e-book, Materials Indicators famous a broad lack of liquidity, growing the potential for a pointy transfer in both course.

“The market is ready to see if extra bid or extra ask liquidity goes to be interested in the vary,” it defined on X (previously often known as Twitter).

“To date, we’re seeing small quantities of bid liquidity ladder up from $20okay nearer to the lively buying and selling zone, however no liquidity of any measurement (new or moved) has been stacked into the vary defending value from a Decrease Low.”

The implications had been nonetheless probably very severe for bulls, with a decrease low (LL) apt to danger even the $20,000 help going ahead.

“Evidently, printing a LL on this TF has macro implications. Printing 2 LLs would push #BTC all the way down to sub $20okay ranges,” Materials Indicators concluded.

RSI strengthens “V-shape restoration” thesis

Zooming out, hope remained that Bitcoin might rescue its total uptrend.

Associated: Bitcoin is in ‘new bull cycle’ — Metric that bottomed earlier than 70% beneficial properties

In a devoted YouTube replace on Aug. 22, Michaël van de Poppe, founder and CEO of buying and selling agency Eight, famous the closely oversold alerts being generated by RSI.

On 12-hour timeframes, the RSI measured lower than 19 on the time of writing — close to its lowest ranges for the reason that 2018 bear market backside. Day by day ranges had been related, reaching their lowest for the reason that March 2020 COVID-19 cross-market crash.

“Each time we see such a transfer, you get a form of V-shape restoration again up, and it finds equilibrium on the next ground,” Van de Poppe stated about earlier BTC value flash crashes.

He added that it was “very doubtless” that Bitcoin might stage a comeback to deal with $26,500 or extra subsequent.

“Present #Bitcoin value motion jogs my memory of September 2020 — simply earlier than the beginning of the earlier bull market,” Jelle in the meantime suggested alongside a comparative chart.

“Absorption and slowly grind increased right here for some time — and I might see this play out equally.”

This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a choice.