Bitcoin's RSI may signify an incoming correction; BTC to $2000 says analyst

29 Apr, 2019 | Updated: 29 Apr, 2019
by Will Heasman
Price Analysis
Bitcoin's RSI may signify an incoming correction; BTC to $2000 says analyst

Previous analytic round-ups from the various traders and chartists of crypto twitter have revealed that sentiment circles around an imminent correction for Bitcoin. As it stands, the majority of these analysts remain unsure about when this correction is going to happen, or by how much we’ll retrace. However, a focus upon a particular technical indicator known as the relative strength index (RSI) may reveal more…

Today specifically many traders are advocating for a step down for bitcoin (BTC), using their various trading techniques as a quasi-crystal ball, with the exception of one trader, who appeared to use an actual crystal ball…

Another looks to a triangle pattern emerging which may see BTC break down to psychological support around $5k :

BTC/USD Chart provided by Tradingview  

A few analysts highlight the aforementioned technical indicator - the relative strength index - which may be signaling bearish divergence.

The RSI measures the speed and change of movements in price. The RSI fluctuates between 0 and 100, with an asset considered oversold below a measure of 30 and overbought above 70.

One analyst, known as HornHairs points to Bitcoin’s RSI, comparing to historical bearish RSI divergence which was followed by a fairly significant dip, adding that BTC has reached a similar juncture.

BTC/USD Chart provided by Tradingview  

Analyst, Nick Cote also points to the is bearish indicator suggesting that this bear scenario would see a lower target of around $4,300, and the bull scenario of increased buyer interest from Asia would provide higher highs, around $6,400: 

Another trader also threw down their two cents suggesting much the same explanation of the RSI reaching oversold levels but offered a much more bearish outcome of BTC possibly going as low as $2000.

So, it looks as if Bitcoin may be oversold, which could lead us to correction, however, just how far down we’ll go, is still very much up for debate…

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