As Bitcoin (BTC) continues to consolidate in the area around $60,000, considering the relative strength index (RSI) of flagship decentralized finance (DeFi) assets has reached the highest oversold level in over 300 days, the current situation may be extended for several more months.
Specifically, according to observations shared by pseudonymous cryptocurrency analyst Jelle in an X post on June 27, Bitcoin has just reached an RSI of 30, the last time this happened was in September 2023, prior to which Bitcoin underwent a consolidation of over three months, just below the crucial resistance of $30,000.
Bitcoin RSI/Price Analysis. Source: CryptoJelleNL
Considering previous chart patterns, the cryptocurrency market expert pointed out that if history repeats itself this time, the largest asset in the cryptocurrency industry by market cap may consolidate for over three months at a level below $70,000.
However, after this “months-long consolidation” and subsequent “surrender to crucial support,” Jelle believes “the real moon is meaningful for ngl,” as he further noted in the comments below the X post, he added that the first cryptocurrency asset is very close to the crucial support.
Bitcoin Price Analysis
Currently, Bitcoin is trading well below the suggested consolidation level, with its price at $60,740, indicating a decrease of 1.26% in the past 24 hours, a 7.51% decrease in the past 7 days, and a cumulative drop of 10.74% on its monthly chart.
Bitcoin Price 7-day Chart. Source: Finbold
At the same time, whales and other cryptocurrency traders are seizing the opportunity to “buy the dip,” and while the price of Bitcoin remains relatively low before inevitably surging to levels predicted by many market experts, ranging from $100,000 this year to several million dollars in the coming years.
In fact, one of the factors predicting the future price performance of the original cryptocurrency is the RSI indicator, as professional cryptocurrency trader Ali Martinez pointed out in a report by Finbold on June 26, indicating that now is the ideal time to buy Bitcoin on the dip.
Bitcoin RSI Indicator Chart Analysis. Source: Ali Martinez
In other words, the cryptocurrency landscape is easily subject to change and can steer in unexpected directions. Therefore, conducting your own research and keeping up with any relevant developments is crucial when investing in assets such as Bitcoin, although the outlook for its future price performance is certainly optimistic.
Disclaimer: The content on this website should not be considered as investment advice. Investing is speculative, and your capital is at risk.