The Relative Strength Index (RSI) is an important indicator for any cryptocurrency, and Bitcoin is no different. Considering that the pioneer cryptocurrency has been around for the longest time, the abundance of data makes it possible to use this indicator in an attempt to determine where the price might be headed. This time, the indicator turns bearish, which means that Bitcoin price could be headed for a further decline from here on out.
Analyst Says RSI Turns Bearish for Bitcoin
Crypto analyst Alan Santana took to the TradingView website part a bearish development for the Bitcoin price. The analysis, which focused on the Relative Strength Index (RSI), shows a continuation of the bearish trend as Bitcoin is poised to decline further.
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Using the weekly Bitcoin chart, the crypto analyst shows that the RSI is actually showing a three-year bearish divergence. This is supported by the RSI chart, which showed a continuous decline throughout the year 2024, after reaching a local peak at the beginning of the year.
Bitcoin’s RSI has fallen by about 42% since the beginning of the year, from 88 to 50.6 at the time of the analysis. However, Alan Santana uses a longer time frame of 2021 to 2024, which shows a bearish divergence in this indicator.
This bearish divergence has arisen because the RSI indicator showed a lower high in 2024 compared to the 95 peak of 2021. According to the analyst, this means that the RSI indicator is now turning bearish for the first time since August 2023. the most bearish the Bitcoin indicator has become in one year.
How low will the BTC price fall?
At the time of the analysis, the Bitcoin price had already suffered a brutal drop from $70,000 to less than $60,000, before staging a small recovery at the time of writing. However, the crypto analyst does not believe this is the end and warns investors to expect a further decline.
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Judging from the chart, Alan Santana expects the Bitcoin price to drop by more than 20% again from here on out. This would mean a price drop below $50,000. The crypto analyst estimates the low point of this decline at around $44,000.
If this prediction were to materialize, it would mean that the price would reach the $40,000 level again for the first time since January 2024. It’s not all bad news, however, as the crypto analyst explains: “This and other signals tell us there is room for lower prices; much lower, before we experience new highs and booms.”
Featured image created with Dall.E, chart from Tradingview.com