A popular crypto analyst, Rekt Capital, is predicting a bullish turn for Bitcoin (BTC), even though it’s currently trading significantly below its all-time high. Their analysis suggests the recent wave of selling is nearing its end.
Seller Exhaustion on the Horizon?
Rekt Capital, with a massive following on X (formerly Twitter), points to declining seller volume over the past couple of weeks as a key indicator. Despite above-average selling pressure recently, this decrease suggests sellers are running out of steam. This, they argue, points towards a potential bottom soon.
RSI and Bullish Divergence: Key Indicators
The analyst also highlights the Relative Strength Index (RSI) on the weekly chart. According to Rekt Capital, if the RSI holds support at the level seen earlier in 2024, Bitcoin could be nearing its bottom. The RSI measures market momentum; a reading below 30 generally suggests an oversold market.
Furthermore, Rekt Capital notes a bullish divergence on Bitcoin’s daily chart. This means that while the price has made lower lows, the RSI is forming higher highs – a positive sign for the future price action.
The Bottom Line
While Bitcoin is currently trading around $84,145, Rekt Capital’s analysis suggests a potential bullish reversal is on the cards. The combination of declining seller volume, RSI support, and a bullish divergence paints a picture of a market nearing a bottom. However, it’s crucial to remember that this is just one analyst’s opinion, and cryptocurrency markets remain highly volatile. Always conduct thorough research before making any investment decisions.