A closely followed crypto analyst says that Bitcoin (BTC) and Ethereum (ETH) may have reached a local market bottom.
In a new post, crypto trader Rekt Capital tells his 542,600 followers on the social media platform X that the Relative Strength Index (RSI) – a momentum indicator used to indicate overbought or oversold conditions – is flashing bullishness for Bitcoin while on the verge of breaking through a descending trendline.
“Can the daily RSI break its downtrend dating to November 2024?”
The analyst also says that Bitcoin may soon rally to fill a CME gap with an upper bound price of $87,000.
A CME gap is the difference between the Friday closing price of Bitcoin and the Monday opening price on the Chicago Mercantile Exchange. Traders watch for gaps as these price differences tend to get filled.
“Bitcoin continues to successfully retest the CME Gap as support (orange box, $78,000-$80,700). More, BTC has been doing so at a higher low (black). If this continues BTC will soon be able to completely fill the $82,245-$87,000 CME Gap above (orange circle).”
Bitcoin is trading for $84,611 at time of writing, up 3.8% in the last 24 hours.
Looking at Ethereum, the analyst says ETH may be entering a significant uptrend after declining into a price support that has historically sparked rallies.
“Ethereum has dropped into this historical demand area (light blue). If the price can generate a strong enough reaction here, then ETH will be able to reclaim the $2,196-$3,900 macro range (black). If ETH does this before the March monthly close, then this entire sub-$2,200 downside would end up as a downside wick.”
ETH is trading for $2,048 at time of writing, up 8.9% in the last 24 hours.
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