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Key indicators and what else to look for from U.Today
U.Today – The recent price movements of have been a whipsaw, featuring a slight rebound after a decline in the last two weeks. According to Santiment, a market analytics platform, Bitcoin’s rebound was short-lived, but there are promising signs that a more substantial rebound could be on the horizon.
Key indicators
Santiment analysis indicates a continuing wave of negative sentiment in the crypto community. This growing impatience is a notable indicator, often signaling a potential market turnaround. The Fear and Greed cryptocurrency index is currently in the fear stage, suggesting market pessimism.
When the public becomes extremely pessimistic, this could set the stage for a price recovery as it suggests that selling pressure may be close to exhaustion.
Another key indicator to keep an eye on is Bitcoin’s Relative Strength Index (RSI). Currently sitting at a low of just 36, the RSI suggests that Bitcoin is approaching oversold territory.
The RSI is a momentum oscillator that measures the speed and change of price movements. An RSI below 30 is generally considered oversold, indicating a potential buying opportunity. Although Bitcoin has not yet reached this level, its proximity could mean a rebound is near.
What else to look for
In addition to the RSI, other technical indicators such as moving averages (MA) could provide additional context for the price of Bitcoin. Bitcoin is currently trading below its daily SMA 50 at $66,341 and a strong move above this level could signal the start of a new uptrend.
In the short to medium term, it may also be essential to keep an eye on macroeconomic factors that impact broader market trends. Economic data, regulatory news and global events could influence the price of Bitcoin. At the time of writing, BTC was up 0.18% over the past 24 hours at $60.877.