Craig Wright in turmoil. The man posing as Satoshi Nakamoto, the founder of Bitcoin, demands no less than 111,000 BTC. A tidy sum that the fake Satoshi Nakamoto probably never had in his possession. With this violent fallthe share price is in an extreme situation at the level of the RSI indicator. Could a major rebound be in the offing?
Bitcoin price rebounds slightly in 24 hours
BTC attempts to bounce back with a up more than 1% in 24 hours. Nevertheless, the Bitcoin price down nearly 8% in a week :
In one month, the king of crypto-currencies posts a more than 9% drop. In six months, the share price increase of over 14. Meanwhile, BTC/ETH has been stagnating for a month.
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Bitcoin price in extreme situation, RSI at all-time low
The RSI is a powerful momentum indicatoris widely used by traders. While it is highly relevant for showing signals of breathlessness (divergences), it can also be useful in other cases. With the recent fall in the BTC price, the RSI has fallen to extremely low levels. In fact, on a daily basis, the momentum indicator shows a lowest since March 2020 :
The Bitcoin price is in a extreme situation. Extremely low points on the RSI have in the past made it possible to rebounds. This is what happened in March 2020 during the Covid crash. In May 2021, when the share price fell by almost 50 %the RSI was at its lowest, and a rebound is in place.
So, despite the recent fall, it remains possible that the price could rebound to the level of psychological round figure at $30,000. Of course, this is not an exact science. In fact, the RSI can remain in the oversold zone for a long time.
Bitcoin price rebounds and stalls at resistance at $26,700
Buyers defended the support at $26,000and, over the course of bounce back at the resistance at $26,700 :
Thanks to this rebound, and the close above 26,300 dollarsBitcoin’s price is back on upward momentum with ascending lows and highs in the very short term. If buyers push, the price could break resistance and return to the level of the next resistance at $27,300. On the other hand, if rejectionthe price could return to the support at $26,000. The RSI breaks the bearish trendlineWe would need to continue to develop above this trendline. In this way, buyers could regain momentum in the short term.
The Bitcoin price is in an extreme situation, the RSI hasn’t been this low since the Covid crash in March 2020. Historically, such low levels have allowed rebounds. In the short term, BTC is changing momentum and stalling at resistance at $26,700. If buyers continue to push, the price could reach the next resistance level at $27,300. Whatever happens, volatility returns to cryptocurrencies !
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