Bitcoin’s latest climb to $32,375 on May 31 was short-lived as the value plummeted below $30,000 in the first few days of June. The majority of altcoins followed BTC on its ascent but now are currently in the red, with significant losses.
At the time of publication, Bitcoin was trading at $29,615, a nearly 3% drop over the previous 24 hours. Ether was changing hands at $1,759, down 3.56% within the same period. Most other major cryptos are tumbling down with Ethereum, recording losses of between 3% and 8%.
Shiba Inu, the Meme cryptocurrency, was likewise trading down 2.89% at $0.00001078. Investors continued to avoid riskier assets, leading to choppy trading conditions owing to increasing inflationary and recessionary fears since the start of this year. Few assets, like Stellar (XLM) and Bitcoin SV (BSV), however, were slightly higher, trading in the green
A Reversal Bounce on the Horizon?
BTC’According to crypto analyst and trader Rekt Capital, s Relative Strength Index (RSI) is mimicking levels hit in January 2015, December 2018, and March 2020, indicating a bounce could be on the way.
“BTC is approaching the RSI Bear Market Bottom area once again. When could it take place in this cycle? It took 1,461 days for the 2018 Bear Market Bottom to form after the 2015 BMB. If the same symmetry repeats, the upcoming BMB will occur in January 2023.” The analyst wrote.
The RSI of an asset is a momentum indicator that determines whether it is oversold or overbought in a given timeframe by measuring recent prices. The trader then proposes a scenario in which the bear market bottom occurs two months earlier in November, citing Bitcoin’s four-year halving as the cause.
“There is a chance that the BTC RSI Bear Market Bottom takes place a little sooner than January 2023.” And this would be due to the Bitcoin halving’’ He shares his analysis thus “BTC bottomed in 2015 approximately 547 days before the 2nd halving.BTC bottomed in 2018 approximately 486 days before the 3rd halving. if BTC bottoms 487 or 548 days before the 4th halving in April 2024, then that bottom would take place in October or November 2022.”
The RSI data shows that Bitcoin, Shiba Inu, and other altcoins have reached oversold levels, implying that those who bought during the months-long downtrend will be rewarded during the next cycle.
