Bitcoin Weakens in Recent Trend, Breaking $60,000 Mark Last Night Alongside Tech Stocks’ Correction. 10x Research believes that the head formation of Bitcoin is complete and has broken through an important support level. It advises investors to sell first and wait for lower prices before buying again. On the other hand, trader Ali Martinez holds the opposite opinion. Based on technical analysis indicators RSI and MVRV, he points out that Bitcoin is in an oversold pattern, making it an excellent buying opportunity.
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10x Research: Bitcoin’s Head Formation Complete
Trader Ali: Buying Opportunity at Low
RSI in Oversold Zone
MVRV Ratio at -8.96%
Bitcoin continues to plummet, with a head formation (double top) appearing! According to the analysis by 10x Research, Bitcoin has fallen below its support level of $63,379, forming a head formation (double top), which may lead to a larger decline. It is recommended for investors to sell first and wait for lower prices to buy again!
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Trader Ali Martinez holds the opposite opinion. Based on technical analysis indicators RSI and MVRV, he points out that Bitcoin is in an oversold pattern and believes that now is the perfect time to buy at a low.
Based on backtesting, in the past two years, Bitcoin’s RSI has touched the oversold zone three times, resulting in BTC prices soaring by 60%, 63%, and 198% respectively. Currently, RSI is once again in the oversold zone.
Note: RSI (Relative Strength Index) is used to determine the strength of buyers and sellers during a period. RSI values range from 0 to 100, with higher values indicating a more active buyer’s market and lower values indicating a quieter market.
Since February 2023, Bitcoin’s MVRV ratio has dropped below -8.40% four times, causing BTC prices to rise by 63%, 100%, 92%, and 28% respectively. Currently, the Bitcoin price is below $60,000, and the MVRV ratio is -8.96%, making it an ideal opportunity to buy at a low!
Note: MVRV (Market Value to Realized Value) measures the difference between the circulating market value and the realized value of Bitcoin, used to determine market sentiment.
(This article is not investment advice, please DYOR)
MVRV
RSI
Bitcoin
Further Reading
Bitcoin Weakens Below $60,000! Dow Jones Industrial Average Rises, Nvidia Drops Over 6% and Returns to Third in Market Value
Andrew Kang: Ethereum Is Not Nvidia, Poor Fundamentals More Like Intel