Bitcoin hovers at $60,000, short-term market sentiment pessimistic
As Bitcoin fell to near $58,000 this week, crypto market sentiment turned pessimistic, and the Cryptocurrency Fear and Greed Index has been at the fear level for two consecutive days, showing investors' concerns about future trends.
However, a well-known analyst recently jumped out and pointed out that two classic indicators have revealed signs of optimism. In terms of long-term investment, Bitcoin is still likely to continue to rise.
Analyst: 2 major Bitcoin indicators are bullish
According to "Cointelegraph", well-known analyst Roman recently said that judging from the weekly K-line trend, Bitcoin's relative strength index (RSI) and Bollinger Bands are two major indicators worthy of attention at present.
He pointed out that a third bullish divergence is forming between Bitcoin price and RSI, and the Bollinger Bands are also gradually narrowing, which may indicate that the next big surge is coming.
What is RSI Bullish Divergence? Simply put, the RSI is making consecutive lower lows at highs, while the Bitcoin price is making consecutive higher lows and making relatively higher lows. In this case, when combined with narrowing Bollinger Bands, huge market volatility could be in store.
Roman said:
“We are now developing a third bullish divergence between price and RSI, although many are selling and predicting a drop in price. The Bollinger Bands are also gradually narrowing, which brings volatility to the market and could trigger a price spike. .
On June 22, Roman further emphasized the importance of weekly closing prices, believing that once the volatility accumulation is completed, Bitcoin prices may go straight to new highs above $90,000.
On June 25, when Bitcoin regained support at $60,000, he once again reminded investors: “This may be your last good opportunity to go long after Bitcoin rushes above $90,000.”
Image source: X/Roman
Analysts note bullish divergence on Bitcoin’s weekly RSI indicator
Traders are confident that the macro environment is favorable for Bitcoin
In addition to bullish signals from technical indicators, traders also cited the importance of the macro environment. Another well-known trader, Daan Crypto Trades, recently stated that Bitcoin’s current shock range is between $59,000 and $74,000, and he has always believed that Bitcoin will one day break through this range.
He added that macroeconomic conditions, including record highs in U.S. stocks and falling bond yields, are favorable for Bitcoin. From a historical perspective, these factors have provided a good environment for the development of Bitcoin and cryptocurrency markets, but the market sometimes takes some time to keep up with changes. But once it catches up, the market often exhibits stunning moves.
He concluded:
“Price stagnating here is not a bad thing in the long term. If Bitcoin goes straight above $100,000 without pausing, the market will definitely top out early in this cycle. Bitcoin and Ethereum are stuck in a volatile range. The longer it takes, the stronger the market establishes in this price area, and prices tend to go higher later.”
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice. Analyst opinions are for reference only. Users should consider whether any opinions, views or conclusions in this article are consistent with their specific circumstances. Invest accordingly and do so at your own risk.