Bitcoin continues to be wrapped up in a dominant bearish direction in the short term, however, several metrics continue to show positive signals.
At the time of this writing, BTC is trading at $29,185, accumulating a slight gain of 0.83% in the last 24 hours, although losing 2.28% in the last 7 days.
In the weekly summary of metrics carried out by CryptoQuant, we see that the outlook has not changed too much since last week.
Indicators that track supply and demand have remained throwing bullish signals. The reserves on the exchanges have remained neutral during this week, in an area of lows not seen since 2019. The metrics related to whale activity are also currently positive.
On the other hand, following the short-term tide, technical oscillators and market sentiment are mostly bearish currently. The futures market continues to overheat, with the leverage index approaching its all-time high.
The RSI tells us that the bottom may be very close
In the historical Bitcoin RSI modeled by analyst PlanB, we see that the price is already in an oversold zone, which has only been reached in bear market funds such as that of 2020, 2018 and 2015.
Undoubtedly, the current moment is a better opportunity than when the price was around $50,000. Those who can rely on the long term, could see today’s price as a great opportunity.
However, we cannot confirm that the bottom has already been reached. In fact, in the RSI we can observe that with each bearish cycle, continuous lower lows have been marking, as the historical volatility reduces, so it is feasible that we still need to see more blood before assuming that we have reached the lowest point.
Weekly Bitcoin forecast based on technical analysis
To make the weekly forecast, let’s review the daily chart of Bitcoin, where we can see the price closing in a lateral range, inclined slightly downwards.
Because the previous trend is bearish, we will most likely see more selling in the near term. The next support level is at $26,281. If this one stays close, the next one to visit is $22,719.
This would change if the price forcefully crosses the downline that I mark in the chart below. This scenario would announce an important respite in the price, but it would not be too relevant as long as the $ 40,000 is not exceeded.
A divergence in the RSI, added to the fact that we are above a very important support level, allows the bullish scenario to have a good part of the probabilities in its favor.
All our publications are of an informative nature, so in no case should they be regarded as investment advice.
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