Bitcoins price falls below 60K Is it time to escape or buy the dip with the complete head and shoulders pattern
Bitcoin Falls Below 60K! Dow Jones Industrial Average Rises, Nvidia Falls Over 6% to Return to Third in Market Value
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10x Research: Bitcoin M-shaped Pattern Complete
Trader Ali: Buying the Dip
RSI is in Oversold Territory
MVRV Ratio is -8.96%
Bitcoin continues to plummet, with the M-shaped pattern (double top) appearing! According to 10x Research’s analysis, Bitcoin has fallen below its support level of 63,379, transforming into an M-shaped pattern (double top), which could lead to a larger decline. It is recommended that investors sell first and wait for lower prices before buying in again!
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Trader Ali Martinez, on the other hand, holds the opposite opinion. Based on technical analysis indicators RSI and MVRV, he points out that Bitcoin is in oversold territory and believes that now is an excellent time to buy the dip.
According to backtesting, in the past two years, Bitcoin’s RSI has touched the oversold zone three times, leading to price increases of 60%, 63%, and 198% for BTC, respectively. And currently, RSI is once again in the oversold zone.
Note: The RSI indicator (Relative Strength Index), also known as the “Relative Strength Index” in Chinese, can be used to judge the strength of buying and selling parties during a period. The RSI value ranges from 0 to 100, with a higher value indicating a more active buyer’s market, and a lower value indicating a quieter market.
Since February 2023, Bitcoin’s MVRV ratio has fallen below -8.40% four times, leading to price increases of 63%, 100%, 92%, and 28% for BTC. Currently, Bitcoin is priced below $60,000, and the MVRV ratio is -8.96%, which may be an ideal time to buy the dip!
Note: MVRV, short for Market Value to Realized Value, is used to measure the difference between Bitcoin’s circulating market value (Market Value) and realized market value (Realized Value) to judge the market sentiment of Bitcoin.
(This article is not investment advice, please DYOR)
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