Historically green – Should importance be given to the daily comings and goings of Bitcoin (BTC) either side of the $30,000? These traders and analysts try to reveal through two indicators, the submerged part of the iceberg.
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Back above $30,000: A reversal in the works for Bitcoin?
Bitcoin price rises above $30,400 on Bitfinex today, June 2, 2022. Bitcoin trades at $30,301 at the time of writing this article. It is currently recording a daily gain of 2.13%.
Bitcoin is thus regaining color, after the significant drop in its price yesterday, 1er June 2022, which caused him to lose the $30,000.
For trader Michaël van de Poppe, the $29,200-$29,300 is a key support level for “ avoid any massive rupture “.
Bitcoin also has to deal with resistances at the $30,500 and $31,500 levelsin his ascent.
While the recent loss of $30,000 once again casts doubt on Bitcoin’s ability to initiate a bullish rally, trader Rekt Capital points out that Bitcoin “ enters RSI oversold conditions “.
He recalls that “historically”, long-term investors who have accumulated bitcoins “under these conditions have benefited from a high return on investment in the many months that followed.
This trend reversal, which should therefore be followed by strong increases for Bitcoin, will it take place in the next few days, the next few weeks, or the next few months?
Bitcoin Below This Average: Bull-Friendly Historical Data?
The metric Investor Tool created by Philip Swift, also seems to confirm this idea of a impending bullish reversal for Bitcoin. This indicator helps to know if the BTC/USD pair is probably overbought or oversold.
L’Investor Tool is based on the two-year simple moving average, and its 5x multiple. The spot price of bitcoin is marked on a graph, compared to the two lines corresponding to these indicators.
L’investor tool has in the past allowed identify local highs and lows. Recently, the bitcoin spot price fell below the two-year simple moving average for the first time since March 2020, a week ahead of the TerraUSD and LUNA classic (LUNC) debacle.
Referring to this price move below this moving average and historical data, Bitcoin’s multi-month trend could therefore once again become bullish again soon.
Bitcoin has been trading for weeks in a canal which makes the shortest termists lose patience. According to the previous indicators, any possible bearish break in bitcoin in the coming days would only be a step back to jump better.
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