Analysts Predict Bitcoin Could Rally Over 60 Due to Oversold RSI

A signal bullish for Bitcoin, which triggered a 200% surge in August 2023, has once again emerged, hinting at another potential rally.
BTC is currently trading around the psychological mark of $60,000, while its RSI indicator has dipped into oversold territory.
Investors in Bitcoin (BTC) are celebrating the reappearance of a bullish signal, suggesting forthcoming gains. Despite BTC struggling to break free from its prolonged bearish trend, a critical indicator that led to nearly 200% gains in August 2023 has reappeared.
Renowned on-chain crypto analyst Ali Martinez, known for accurate predictions, recently shared an optimistic outlook on Bitcoin. Presenting findings on the X platform, Martinez highlighted that Bitcoin has entered the “oversold territory” three times in the past two years, preceding price surges of 60%, 63%, and 198%, respectively.
Over the past two years, Bitcoin’s daily RSI has entered oversold conditions on three occasions, resulting in price surges of 60%, 63%, and 198% for $BTC, respectively.
With BTC now trading below $62,000 and its RSI once again in oversold territory, this may present an opportune moment to consider buying the dip!
pic.twitter.com/JkJ4IgoeML
— Ali (@ali_charts)
June 24, 2024
Following a drop below $62,000, the world’s largest cryptocurrency entered oversold territory. With BTC poised for a potential rally to new all-time highs, savvy investors are closely monitoring developments, aiming to capitalize on a potential surge of over 60%. In the best-case scenario, a rally of up to 200% could be in store.
As of the time of writing, BTC is priced at $61,600, experiencing marginal movement over the past 24 hours. The digital asset has stabilized following a 7% decline earlier in the week, testing lows around $58,000.
Bitcoin (BTC) Faces Bearish Pressures
It’s crucial to note that BTC has encountered significant selling pressure from various fronts including Germany, the U.S., miners, and creditors of Mt. Gox. German law enforcement agency BKA has transferred approximately 6,500 Bitcoin to two major exchanges, indicating potential large-scale sales. Meanwhile, the trustee of Mt. Gox is preparing to initiate a substantial repayment plan, distributing over 140,000 BTC to clients affected by the 2014 hack. More recently, the U.S. government moved 3,940 seized Silk Road BTC to Coinbase Prime, causing unease in the market.
Bitcoin miners have also contributed to the sell-off, adding further downward pressure on prices. At current price levels, miners are compelled to sell their BTC holdings to cover operational expenses, a scenario that experts had warned about back in March. The concentration of mining operations among a few entities means that their economic decisions can disproportionately impact Bitcoin’s price.
It’s notable that inflows into Bitcoin spot ETFs have slowed down, diverging from the trend seen during the March rally when BTC hit $73,000. The correlation between ETF inflows and price surges has been evident since the inception of these financial products.
Furthermore, the upcoming launch of an Ethereum ETF in July and the filing for a Solana ETF could divert investor attention away from Bitcoin towards other cryptocurrency ETFs.
Despite these challenges, the decreasing supply and increasing adoption of Bitcoin by governments, financial institutions, and retailers continue to underpin its long-term viability. Market analysts have set a conservative price target of $100,000 by year-end.
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