Metric analysis

This metric suggests a reversal bounce could be on the horizon for Bitcoin

Bitcoin’s last surge to $32,375 on May 31 was short-lived as the value dipped below $30,000 in the first few days of June. The majority of altcoins have followed BTC in its ascent but are currently in the red, with significant losses.

At the time of publication, Bitcoin was trading at $29,615, down almost 3% in the past 24 hours. Ether was changing hands at $1,759, down 3.56% over the same period. Most other major cryptos are crashing with Ethereum, registering losses of between 3% and 8%.

Shiba Inu, the Meme cryptocurrency, was also trading down 2.89% at $0.00001078. Investors continued to avoid riskier assets, which led to volatile trading conditions due to growing inflationary and recessionary fears since the start of this year. Few assets, like Stellar (XLM) and Bitcoin SV (BSV), however, were marginally higher, trading in the green

A reversal bounce on the horizon?

According to crypto analyst and trader Rekt Capital, BTC’s Relative Strength Index (RSI) mimics levels reached in January 2015, December 2018, and March 2020, indicating that a rebound may be underway.

“BTC is approaching the RSI Bear Market Bottom zone again. When could it take place in this cycle? It took 1,461 days for the 2018 bear market bottom to form after the 2015 BMB. If the same symmetry repeats, the next BMB will be in January 2023.” The analyst wrote.

An asset’s RSI is a momentum indicator that determines whether it is oversold or overbought over a given period by measuring recent prices. The trader then offers a scenario in which the bear market bottom occurs two months earlier in November, citing Bitcoin’s four-year halving as the cause.

“There is a chance that the BTC RSI Bear Market Bottom will take place a little earlier than January 2023.” And this would be due to the Bitcoin halving’‘ He thus shares his analysis “BTC bottomed in 2015 about 547 days before the 2nd halving. BTC bottomed in 2018 about 486 days before the 3rd halving. if BTC bottomed 487 or 548 days before the 4th halving half in April 2024, then this trough would take place in October or November 2022.”

RSI data shows that Bitcoin, Shiba Inu and other altcoins have reached oversold levels, implying that those who bought during the multi-month downtrend will be rewarded in the next cycle.

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