If the bitcoin price were to turn down, it would meet resistance in the $26,000 area.
This trader’s analysis is mainly based on the RSI indicator.
The trader and market analyst who identifies himself on social networks as SantinoCrypto predicts that the price of bitcoin (BTC) could correct as high as $26,000 or $27,000 before starting a “spectacular bull run”, which would send the price of the cryptocurrency to new all-time highs for October of this year.
Of agreement with SantinoCrypto, bitcoin’s weekly relative strength index (RSI) shows a similar structure to what it had in July 2020. The RSI is a technical indicator widely used in the analysis of financial markets, including cryptocurrency, which measures the speed and change of price movements. The RSI is used to determine if an asset is in an overbought or oversold situation.
The bitcoin price has experienced a significant increase in recent days. As seen in the CriptoNoticias Price Calculator, it is currently trading at USD 30,263.02, after having risen more than 8% in the last week. SantinoCrypto’s prediction about bitcoin price correction It could be related to the $26,000 to $27,000 zone, where the digital currency kept lateralizing for almost a month before the recent increase in its price.
To understand this prediction, It is important to know some basic concepts of technical analysis applied to the cryptocurrency market. One of them is the concept of support and resistance. A support is a price level at which demand for a cryptocurrency is strong enough to stop and possibly reverse the downtrend. On the other hand, a resistance is a price level at which the supply of a cryptocurrency is strong enough to stop and possibly reverse the uptrend.
In this case, SantinoCrypto suggests that the support level in the range of $26,000 to $27,000 could be key to stop the correction in the bitcoin price. If the cryptocurrency follows the behavior it had in July 2020, as the trader affirms, it is possible to see a correction to said level before a new bullish rally begins. It is worth clarifying that this it’s just a price model and bitcoin shouldn’t necessarily follow the behavior it had on that occasion.
SantinoCrypto, as mentioned, is optimistic about the future of Bitcoin, stating that the price could reach USD 100,000 in a year from now. However, it is important to remember that predictions in the cryptocurrency market can be uncertain and investors should exercise caution and do their own research before making investment decisions.