A popular crypto analyst is raising a red flag about Bitcoin’s price, suggesting that a classic indicator could determine its next move.
RSI: A Cause for Concern?
Benjamin Cowen, a crypto strategist with over 800,000 YouTube subscribers, is looking at Bitcoin’s Relative Strength Index (RSI). The RSI is a tool used to figure out if an asset is overbought or oversold. Cowen says the RSI is sending out some “uncomfortable” signals.
When looking at Bitcoin’s price over the past two weeks, Cowen noticed that every time the price hit a peak, the RSI also hit a downward resistance level. This happened in March, and it’s something that has happened before at major Bitcoin price peaks in 2011, 2013, and 2017.
Could Bitcoin Pull a 2019?
While the two-week RSI is showing some worrisome signs, Cowen also looked at the monthly chart. He pointed out that Bitcoin could potentially “pull a 2019,” where the RSI initially fails to break through a certain level before eventually reaching it.
In 2019, Bitcoin had a good run, but then the monthly RSI dropped for nine months, from June 2019 to March 2020. If something similar happens this time, it could mean a potential price drop for Bitcoin until December 2024.
Bitcoin’s Current Situation
Right now, Bitcoin’s monthly RSI is sitting at 60.99. Bitcoin is currently trading at $57,933, up 1.3% in the last 24 hours.
Important Note: This is not financial advice. Always do your own research before investing in cryptocurrencies. /p>
