Bitcoin Price Struggles: Key Indicators Point to Possible Correction

Bitcoin Price- Bitcoin’s RSI and Dominance: Are We Close to a Market Shift?

Bitcoin Price– Bitcoin (BTC) has faced recent losses, even as seemingly positive news continues to emerge. One notable example is Spanish banking giant BBVA offering BTC and Ethereum (ETH) trading to its clients. Despite these positive developments, Bitcoin’s price has struggled, raising questions about the market’s direction.

The Bitcoin Rainbow Chart, a logarithmic growth curve that highlights long-term Bitcoin trends with rainbow colors, indicates that Bitcoin is still “cheap” at the time of writing. Historically, the chart has touched the “Seriously sell!” territory during previous market cycles. However, this time, Bitcoin has yet to reach the “Is this a bubble?” zone, suggesting that the market may not be near a peak yet.

While the Bitcoin Rainbow Chart can offer insights, it is not enough to base investment decisions solely on it. Nevertheless, some key differences from past cycles, along with the current price action, indicate that we may not be near the top.

RSI and Bitcoin’s Recent Performance

In the 2017 cycle, Bitcoin’s weekly RSI remained above 70 for multiple weeks as the price reached new highs. Similarly, in 2021, a bearish divergence between price and RSI led to a sharp 50% drop before the market eventually recovered. Recently, the RSI was above 70 for six weeks but quickly fell below 50, suggesting a similar correction may be underway. A correction of this magnitude could take Bitcoin’s price down to around $54,000.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.