Bitcoin’s price has been on a roller coaster ride lately, and things might be about to get even bumpier.
A Bearish Signal
A key indicator called the Relative Strength Index (RSI) is flashing a warning sign for Bitcoin. This means that Bitcoin could be headed for a serious drop in price.
An analyst named Alan Santana has been watching the RSI closely. He noticed that the indicator has been steadily declining since the start of 2024, and it’s now at its lowest point in a year. This is a pretty strong signal that the Bitcoin price could be in for a tumble.
How Low Will It Go?
Santana believes that Bitcoin could drop by over 20% from its current price. This means we could see Bitcoin dip below $50,000, potentially even reaching the $40,000 mark.
While this might sound scary, Santana also points out that this dip could be a necessary step before Bitcoin takes off again. He sees this as a chance for the market to reset before a new surge in price.
The Bottom Line
It’s important to remember that no one can predict the future of the market with certainty. But, the RSI is a valuable tool for understanding market trends, and it’s definitely worth paying attention to. If you’re invested in Bitcoin, be prepared for some potential volatility in the coming weeks.
