Popular analyst Ali Martinez is extremely bullish on Bitcoin. He sees a positive signal, which was last seen in August 2023. At that time, Bitcoin found a local bottom at $56,600, after which it started new increases.
Big chance to buy the dip?
If you ask Martinez, this represents a great opportunity to buy the dip with Bitcoin. According to the analyst, the Relative Strength Index (RSI) has entered “oversold territory”.
Every time we saw that on the daily chart over the past two years, it didn’t take long for Bitcoin to jump 60% higher, Martinez claims.
The RSI is a so-called momentum indicator from technical analysis. Scores from 0 to 30 mean that Bitcoin is “oversold” and, according to Martinez, imply that a bottom is nearby.
Of course, it is too simplistic to build a complete strategy around it, but it is at least a “positive” signal. The fact that Bitcoin is now oversold does not mean that we can go down even further.
So definitely don’t see these types of indicators and numbers as some kind of exact science.
Even more support for the Bitcoin price
In addition to the RSI, Martinez also sees positive signs in Bitcoin’s Market Value to Realized Value (MVRV). The MVRV compares the current market cap to the realized market cap.
We calculate the realized market cap by calculating the average purchase price of all Bitcoin (what was the Bitcoin price when all Bitcoin last changed addresses on the blockchain).
“Since February 2023, Bitcoin’s MVRV has dropped to -8.40% on 4 occasions. That caused price explosions of 63%, 100%, 92% and 28%. Bitcoin is currently trading below $60,000 (this was yesterday) and the MVRV of -8.96% could be the ideal time to buy the dip,” said Martinez.
What do you think? Will Bitcoin’s price dips be over soon or will we continue to trade in the current range for the digital currency?
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Source: https://newsbit.nl/populaire-analist-is-ondanks-koersdalingen-bullish-over-bitcoin/
