Bitcoin’s (BTC) price is experiencing a drop, mostly due to rising regulatory worries in the United States, after weeks of climbing to temporarily retake the $24,000 position. Investors are examining several technical indications that might provide hints as to what to anticipate next in the midst of the uncertainty.
Particularly, a crypto analyst using the Twitter handle Elcryptoprof highlighted in a tweet on February 12 that one of Bitcoin’s important technical indicators, the Rainbow Relative Strength Index (RSI), had turned green for the first time following a protracted drop.
This is a big deal for Bitcoin since the trend indicates that the long-term momentum is probably going to be bullish. The expert’s study indicates that comparable green crosses have historically signaled the start of big bull runs.
For instance, the green crossing in 2012 signaled the beginning of a bull run, and the green crossover in 2019 similarly heralded the start of the most recent significant rally. Elcryptoprof drew attention to the fact that the 2015 pattern led to a fakeout before a significant rise. It is important to remember that past results do not guarantee future outcomes in this context, and it is unclear if Bitcoin will enjoy a similar price increase this time around.
A variant of the primary TSI technical indicator, the Bitcoin Rainbow RSI resembles the Rainbow Ribonacci, which is distinguished by the Rainbow Ribbon of Fibonacci period and levels.
Since then, Bitcoin has fallen below the $22,000 mark, although it is still in the positive territory on the annual chart. As of publication, the price of one bitcoin was $21,847.
In fact, the most recent downturn came after the Securities Exchange Commission (SEC) recently took action to tighten down on staking. In particular, Kraken’s staking services will end as a result of an agreement the regulator made with the cryptocurrency exchange.
Michal van de Poppe, a crypto trading specialist and analyst, argued that the Bitcoin correction is minimal and attributed it to SEC ‘FUD’ that has caused more investors to leave the market.
“A week ago, it was $24,500, and people rushed to get in. Right now, price is at $21,700, and due to some SEC FUD, people want to rush out. Erase context. Price is low, undervalued, and will be way higher in the future. Use these prices to accumulate,” he said in a tweet on February 11.
Investors will be keeping an eye out for significant events that might have an impact on macroeconomic variables as Bitcoin is under negative pressure. Investor attention will be on the Consumer Price Index data, the Empire State report, and the Producer Price Index in the upcoming week.
It’s interesting to note that future Bitcoin price predictions also show a gloomy tendency. In this line, according to Finbold, PricePredictions’ machine learning system predicted that the first cryptocurrency will probably trade at $21,632 on February 14, 2023.
The TradingView one-day indices for Bitcoin are still optimistic in the interim. The technical analysis summarizes the attitude as “buy” at 13, and moving averages also support this feeling at 8. Oscillators are available elsewhere for “purchase” at 5.
The general market mood is still unsure as Bitcoin seems to be stagnating.