A widely followed analyst is leaning bullish on Bitcoin (BTC) despite the crypto king hovering more than 20% below the all-time high reached in January.
The analyst pseudonymously known as Rekt Capital tells his 542,500 followers on the social media platform X that the heavy selling that Bitcoin has experienced over the past couple of weeks is about to end.
“It has been a seller-dominated market over the past two weeks, with above-average seller volume being a daily occurrence.
However, there’s been declining seller volume over this period.
This should contribute to seller exhaustion sooner than later.”
The pseudonymous analyst further says that Bitcoin could bottom out if the Relative Strength Index (RSI) indicator on the weekly time frame maintains a support level that stretches back to early 2024. The RSI, a momentum oscillator used to determine oversold or overbought conditions, is calibrated between 0 and 100 with a reading of or below 30 indicating oversold conditions and a reading of or above 70 suggesting overbought conditions.
“The last few times that Bitcoin dropped into RSI=44 (blue), the price didn’t bottom right away but was very close to the ultimate bottom.
Hold the weekly RSI=44 and the Bitcoin bottom shouldn’t be far away.”
The widely followed analyst also says that Bitcoin is forming a bullish divergence on the daily time frame. A bullish divergence occurs when the price forms lower lows while an indicator such as the RSI forms higher highs. According to Rekt Capital, the bullish divergence forming on Bitcoin’s daily chart is a very early-stage positive sign for the crypto king.
Bitcoin is trading at $84,145 at time of writing.
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