This article is available in Spanish.
In his last video analysis titled “BITCOIN’S One Indicator Signaling LAST Major Dip,” Dan Gambardello, a well-known crypto analyst with 370,000 subscribers on YouTube, dives into Bitcoin’s latest price action to predict what could potentially be the last major dip. After falling to a low of $60,000 on Wednesday, fears of another deeper price crash have gripped the Bitcoin market.
Why this could be the final step back for Bitcoin
Gambardello emphasizes the importance of the 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 for short-term market sentiment.
However, most of the analyst’s focus is on the six-hour chart’s Relative Strength Index (RSI), a momentum oscillator used to measure the speed and change of price movements, which has reached the oversold level. According to Gambardello, the RSI reaching oversold territory is traditionally seen as a bullish signal, possibly indicating an impending end to the current price decline.
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“I think the bottom is close. There could be some kind of capitulation in the very short term, but I think there could be a very strong rebound after that,” Gambardello noted, suggesting that despite the immediate market unrest following the news of Israel’s conflict and Iran, the fundamentals point towards an ultimately robust recovery.
Via X, Gambardello added: “There’s nothing like a six-hour oversold RSI at the start of bull season. Also great during bull season.”
This claim is based on his analysis of past market behavior under similar circumstances, which reinforces the cyclical nature of Bitcoin market dynamics. Drawing parallels to historical data, Gambardello highlights Bitcoin’s behavioral trends in the previous October months, noting a pattern of initial declines followed by a strong recovery towards the end of the month.
“October closes green. It always is [like this] with the dip. People just panic. I think that’s it, but this buys us some time. We get all these red candles in October, give us another week, maybe even two, and we can get a pump, a breakout to the upside by the end of October,” Gambardello claims.
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To further deepen the analysis, Gambardello discusses the possible scenarios surrounding Bitcoin’s lower trendline, a recurring support level over the past six months. He speculates that if Bitcoin approaches this trendline again, it could effectively serve as a robust support level, potentially marking the last significant downturn before a sustained uptrend.
Notably, a final touch of the trendline could send the BTC price down to $50,000. However, Gambardello thinks this is a less likely scenario as the 6-hour RSI has already reached oversold territory, while BTC is currently bouncing back from the 50-day moving average.
Additionally, Gambardello points to Bitcoin’s performance over the past half-years, which are typically followed by bull markets, as seen in 2016 and 2020. Gambardello suggests that the current year could follow a similar trajectory. “This is a half year. We saw what happened during the October 2020 and 2016 half-lives. Is it going to repeat itself?”
At the time of writing, Bitcoin was trading at $60,899.
Featured image created with DALL.E, chart from TradingView.com