Bitcoin analyst eyes ‘V-shape’ BTC price bounce as RSI hits 5-year low

Bitcoin (BTC) remained stubbornly anti-trend on Aug. 22 as $26,000 ended up being a magnet for intraday BTC cost action.BTC/ USD 1-hour chart. Source: TradingViewBTC price “death chop” returnsData from Cointelegraph Markets Pro and TradingView tracked a 3rd day of sideways efficiency for BTC/USD. Regardless of being greatly oversold, according to relative strength index (RSI) readings, Bitcoin declined to use any form of recovery bounce from levels last seen 2 months prior.Market individuals were restless, with popular trader Jelle describing intraday movements as the “death chop.””At this phase it seems like a video game of chicken to see who is going to make a move to break the chop,” monitoring resource Material Indicators said.Analyzing liquidity on the Binance BTC/USD order book, Material Indicators kept in mind a broad lack of liquidity, increasing the capacity for a sharp relocation in either instructions.”The market is waiting to see if more quote or more ask liquidity is going to be brought in to the variety,” it discussed on X (formerly called Twitter). “So far, we are seeing percentages of bid liquidity ladder up from $20k closer to the active trading zone, however no liquidity of any size (brand-new or moved) has been stacked into the range defending cost from a Lower Low.”The ramifications were nevertheless possibly really major for bulls, with a lower low (LL) apt to run the risk of even the $20,000 assistance moving forward.”Needless to state, printing a LL in this TF has macro implications. Printing 2 LLs would push #BTC down to sub $20k levels,” Material Indicators concluded.BTC/ USD order book information for Binance annotated chart. Source: Material Indicators/XRSI enhances “V-shape recovery” thesisZooming out, hope stayed that Bitcoin might save its overall uptrend.Related: Bitcoin remains in new bull cycle– Metric that bottomed prior to 70% gainsIn a dedicated YouTube update on Aug. 22, Michaël van de Poppe, creator and CEO of trading company Eight, kept in mind the greatly oversold signals being created by RSI.On 12-hour timeframes, the RSI determined less than 19 at the time of composing– near its least expensive levels given that the 2018 bear market bottom. Everyday levels were similar, reaching their lowest since the March 2020 COVID-19 cross-market crash.”Every time we see such a relocation, you get a sort of V-shape recovery back up, and it discovers equilibrium on a higher flooring,” Van de Poppe said about previous BTC price flash crashes.He included that it was “likely” that Bitcoin could stage a return to focus on $26,500 or more next.BTC/ USD 12-hour chart with RSI. Source: TradingView”Current #Bitcoin cost action advises me of September 2020– just before the start of the previous bull market,” Jelle on the other hand suggested along with a relative chart. “Absorption and gradually grind greater here for a while– and I could see this play out.”BTC/USD comparative chart. Source: Jelle/XThis short article does not consist of financial investment recommendations or suggestions. Every investment and trading relocation includes threat, and readers ought to conduct their own research when making a choice.

“At this phase it feels like a video game of chicken to see who is going to make a move to break the chop,” monitoring resource Material Indicators said.Analyzing liquidity on the Binance BTC/USD order book, Material Indicators kept in mind a broad lack of liquidity, increasing the potential for a sharp move in either instructions. “So far, we are seeing small quantities of bid liquidity ladder up from $20k closer to the active trading zone, but no liquidity of any size (brand-new or moved) has actually been stacked into the variety protecting rate from a Lower Low.”Every time we see such a relocation, you get a sort of V-shape healing back up, and it discovers balance on a higher flooring,” Van de Poppe stated about previous BTC rate flash crashes.He included that it was “really likely” that Bitcoin might stage a return to focus on $26,500 or more next.BTC/ USD 12-hour chart with RSI.