U.Today’s recent price movements have been wild swings, marked by a slight recovery after a decline over the past two weeks. According to market analytics platform Santiment, Bitcoin’s recovery has been short-lived, but there are promising signs that a more significant recovery may be on the horizon.
Key indicators
Santiment’s analysis points to a continued wave of negative sentiment among the crypto community. This growing impatience is a notable indicator, and often signals a potential market turnaround. The cryptocurrency Fear and Greed Index is currently in a fear mode, indicating market pessimism.
When the public becomes too pessimistic, it may pave the way for a price recovery because it indicates that selling pressure may be about to be exhausted.
Another key indicator to watch is Bitcoin’s Relative Strength Index (RSI). The RSI is currently at a low of just 36, indicating that Bitcoin is approaching oversold territory.
The Relative Strength Index (RSI) is a momentum indicator that measures the speed and change of price movements. An RSI below 30 is typically considered oversold, indicating a potential buying opportunity. While Bitcoin has not yet reached this threshold, its proximity could mean a bounce is imminent.
What are you looking for?
Besides the RSI, other technical indicators such as moving averages (MA) could provide additional context for Bitcoin’s price. Bitcoin is currently trading below the 50-day SMA at $66,341, and a strong move above this level could signal the start of a new uptrend.
In the short to medium term, it may also be necessary to monitor macro factors that influence broader market trends. Economic data, regulatory news, and global events may all impact the price of Bitcoin. At the time of writing, Bitcoin was up 0.18% over the past 24 hours to $60,877.
