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In his latest video analysis titled “BITCOIN’S One Indicator Signaling LAST Major Dip,” Dan Gambardello, a well-known crypto analyst with 370,000 subscribers on YouTube, examines the recent price action of Bitcoin to predict what the dip might be. the last big one. After dropping to $60,000 on Wednesday, fears of another deep price crash gripped the Bitcoin market.
Why This Could Be Bitcoin’s Last Leg Down
Gambardello emphasizes the importance of daily and six-hour charts. On the daily chart, Bitcoin is currently testing the 50-day moving average, a level that often serves as a litmus test of short-term market sentiment.
However, the analyst focused on the six-hour chart Relative Strength Index (RSI), a momentum oscillator used to measure the speed and change of price movements, which reached oversold levels. According to Gambardello, an RSI reaching an oversold area is traditionally considered a bullish signal, which may indicate an imminent end to the current price dip.
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“Actually, I think, it’s close. There may be some kind of cap in the very short term, but I think there may be a strong explosion after that, “said Gambardello, suggesting that despite the turmoil in the markets following the news of the Israel-Iran conflict, the fundamentals point to a strong recovery in the end.
On X, Gambardello added, “There is no such thing as an oversold 6-hour RSI at the start of bull season. It’s also good for bull season. “
This assertion is based on his analysis of market behavior in the past during similar situations, which reinforces the cyclical nature of Bitcoin market volatility. Drawing parallels with historical data, Gambardello highlights the behavioral trends of Bitcoin last October, noting a pattern of initial decline followed by a strong recovery at the end of the month.
“October will close in green. It always is [like this] with a dip. People are just panicking. I think that’s it, but this gives us a little time. “We’re getting all these red candles going into October, give us another week, maybe two and we can get a pump, an upward burst to end October,” said Gambardello.
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Further deepening the analysis, Gambardello discusses possible scenarios surrounding Bitcoin’s lower trendline, a support level that has persisted over the past six months. He speculates that if Bitcoin approaches this trend line again, it could effectively act as a strong support level, possibly marking the last significant decline before a further rise.
Notably, the last touch of the trendline may lower the price of BTC as low as $50,000. However, Gambardello thinks this is a likely scenario as the 6-hour RSI has already reached oversold territory while BTC is currently bouncing off the 50-day moving average.
In addition, Gambardello refers to the performance of Bitcoin in the previous halving years, which are often followed by bull markets, as seen in 2016 and 2020. Gambardello suggests that the current year could follow a similar trajectory. “This is the year of Half. We have seen what happened in Half years in 2020 and 2016 in October. Will it happen again?”
At press time, Bitcoin traded at $60,899.
The featured image was created with DALL.E, a chart from TradingView.com