Is Bitcoin’s Latest Dip the Final One? Expert Points to Key Indicator
Could This Be Bitcoin’s Last Major Dip? A Key Indicator Hints at a Potential Turnaround
In his latest video analysis titled \”BITCOIN’S One Indicator Signaling LAST Major Dip,\” Dan Gambardello, a renowned crypto analyst with a YouTube following of 370,000, delves into Bitcoin’s recent price action to forecast what could potentially be the final major dip. With Bitcoin having fallen as low as $60,000 on Wednesday, fears of a deeper price crash have gripped the Bitcoin market.
Why This Could Be the Final Dip for Bitcoin
Gambardello emphasizes the significance of the daily and six-hour charts. On the daily chart, Bitcoin is currently testing the 50-day moving average, a level often used as a barometer of short-term market sentiment. However, the analyst’s primary focus is on the six-hour chart’s Relative Strength Index (RSI), a momentum oscillator used to measure the speed and change of price movements. This RSI has reached oversold levels.
According to Gambardello, the RSI reaching oversold territory is traditionally considered a bullish signal, potentially indicating an approaching end to the current price dip.
\”The bottom is actually, I think, close. There could be some type of capitulation in the very short term, but I think there could be a very strong bounce after that happens,\” Gambardello noted, suggesting that despite the immediate market turmoil following the Israel-Iran conflict news, the fundamentals point towards an eventual robust recovery.
Via X, Gambardello added, \”Nothing like a 6 hour oversold RSI at the beginning of bull season. Also great during bull season.\” This assertion is based on his analysis of past market behaviors under similar conditions, reinforcing the cyclical nature of Bitcoin’s market dynamics.
Drawing parallels to historical data, Gambardello highlights Bitcoin’s behavioral trends in previous Octobers, noting a pattern of initial declines followed by strong recoveries by the end of the month.
\”October will close green. It’s always [like this] with the dip. People are just freaking out. I guess that’s it, but this gives us a little time. We’re getting all these red candles going into October, give us another week, maybe even two and we could get a pump, a breakout to the upside to end October,\” Gambardello claims.
Deeper Analysis: Bitcoin’s Lower Trendline and Halving Years
Further deepening the analysis, Gambardello discusses potential scenarios surrounding Bitcoin’s lower trendline, a recurring support level over the past six months. He speculates that if Bitcoin approaches this trendline again, it could act as a robust support level, potentially marking the last significant downturn before a sustained upward trend.
It’s worth noting that a final touch of the trendline could potentially push the BTC price as low as $50,000. However, Gambardello believes this scenario is less likely as the 6-hour RSI has already hit oversold territory while BTC is currently bouncing off the 50-day moving average.
Additionally, Gambardello points to Bitcoin’s performance in past halving years, which are typically followed by bull markets, as seen in 2016 and 2020. He suggests that the current year could follow a similar trajectory.
\”This is a Halving year. We’ve seen what’s happened in Halving years in 2020 and 2016 in October. Is it going to repeat?\”
At press time, Bitcoin traded at $60,899. Featured image created with DALL.E, chart from TradingView.com