Crypto analyst Ali Martinez believes Bitcoin (BTC) is showing signs of a bullish trend. According to Martinez, whenever the Relative Strength Index (RSI) indicator has dropped into “oversold territory” on the daily chart over the past two years, Bitcoin has surged by at least 60%.
RSI Oversold Signal
In August 2023, Bitcoin’s RSI dipped into oversold territory, sparking a nearly 200% surge from around $25,000 to an all-time high above $73,000. With Bitcoin currently below $62,000 and the RSI in oversold territory again, Martinez suggests it may be a good time to buy the dip.
MVRV Ratio Indicates Undervaluation
Another metric, the Market Value to Realized Value (MVRV) ratio, also indicates that Bitcoin may be undervalued. When the MVRV value drops below zero, it suggests oversold conditions. Martinez notes that in the past, when the MVRV ratio has dipped below -8.40%, Bitcoin has experienced price increases of up to 100%. With the MVRV ratio currently at -8.96%, Martinez believes it may be an ideal time to buy.
Disclaimer
It’s important to note that the opinions expressed by Martinez are not investment advice. Investors should always conduct their own research before making any high-risk investments in Bitcoin or other cryptocurrencies.
