The crypto research platform 10x Research recently highlighted the fact that the Bitcoin Relative Strength has surged to 40%. According to their findings, whenever the relative strength index (RSI) of Bitcoin drops to 40%, the flagship cryptocurrency has historically seen potential rallies. This suggests that Bitcoin could be on the verge of another rally following its recent decline. However, the research platform also pointed out that there is a critical level at $62,000 that could prevent Bitcoin from rallying further. Despite this warning, Bitcoin has already surpassed this level, indicating a possible bullish sentiment surrounding the crypto token.
In order for Bitcoin to enjoy a sustained rally, it may need a catalyst. 10x Research highlighted four bullish events that have historically propelled Bitcoin into a parabolic run after breaking a significant support level. These events include Treasury Secretary Janet Yellen’s bid for uncapped deposit insurance, BlackRock’s application for a Spot Bitcoin ETF, Franklin Templeton’s filing for a Spot Bitcoin ETF, and a drop in US Core PCE below 3.0%. Without such catalysts, Andrey Stoychev, Head of Prime Brokerage at Nexo, predicts that Bitcoin may continue to trade around the $67,000 range without making significant moves to the upside.
While 10x Research’s trend model indicates that Bitcoin is currently in a downtrend, they have not completely ruled out the possibility of a bullish reversal. The research firm mentioned that they would consider buying the dip if Bitcoin experiences a significant drop or rallies from its current position. On the other hand, crypto analysts like Mikybull Crypto and Ali Martinez have expressed optimism about Bitcoin hitting new highs in the future. Mikybull Crypto believes that Bitcoin’s current price action is intended to instill fear in the market before bottoming out for a continued upward trend, while Ali Martinez noted that Bitcoin’s previous bull runs have seen consolidation around this period, suggesting that the current bull run may not be over.
Analysts like PlanB have made bold predictions about Bitcoin’s price trajectory. Martinez suggested that if Bitcoin surpasses the resistance level of $69,150, it could potentially reach a new all-time high of $92,190. Furthermore, PlanB stated that Bitcoin hitting $100,000 this year is “inevitable.” These predictions, coupled with the current price of Bitcoin trading at around $63,500, up over 7% in the last 24 hours, indicate a sense of optimism within the crypto community about Bitcoin’s future performance.
The future of Bitcoin remains uncertain yet promising. While some indicators suggest a potential rally, others point towards a downtrend. It is crucial for investors to conduct thorough research and analysis before making any investment decisions in the volatile crypto market. As the industry continues to evolve, keeping an eye on key catalysts and market trends will be essential in navigating the ever-changing landscape of cryptocurrency investments.