In the choppy waters of the crypto market, the valiant bulls of Bitcoin are relentlessly battling to reclaim the crucial threshold of $30K. This active struggle is juxtaposed with the relative strength index (RSI) undergoing a ‘reset,’ which poses interesting dynamics for crypto followers.
Over recent weeks, Bitcoin prices dipped to new lows, at one point falling to $29,932. The unyielding attempt by Bitcoin bulls to maintain the support level at $30,000 is a tug-of-war that’s keeping crypto enthusiasts on their toes. Coupled with the lack of upward momentum and a low RSI, those hoping for a return to range highs may face an uphill battle.
Some traders are predicting downside targets could go as low as $27,000, hinting at potential volatility in longer timeframes. This is a scenario that both intraday traders and long-term holders should monitor closely. Others, however, are looking beyond the current downturn, setting their sights on the potential for Bitcoin‘s uptrend to bounce back in 2023.
That said, viewpoints oscillate around the current downturn and the potential for future uptrend. Amidst these oscillations, the RSI ‘reset’ is adding a new dimension. The RSI is shifting down to levels last seen in mid-June, when Bitcoin trade levels lingered around $26,000.
Scott Melker, a popular trader, considers $28,600 – a line that marked the low of the entire bull run of 2021 – as a potential support level for Bitcoin. However, even this assertion is laced with uncertainty, reflecting the market’s fluctuating dynamics.
While some may consider $28,600 as a short-term floor, courtesy of the modest rebound, others cite Bitcoin’s weakening RSI that traditionally points to decreased buying power. However, it’s crucial not to overlook the fact that sagging RSIs can occasionally be precursors to price reversals, formulating an interesting dynamic that requires one to tread lightly.
It is worth noting that discussions on Bitcoin‘s trends should not be construed as investment advice. Every investment and trading decision involves risk, and individuals should conduct their research when making decisions. This narrative is part of a conversation that unfolds in real-time, offering a glimpse into the capricious world of cryptocurrencies.
Source: Cointelegraph
