Analyst and trader Ali Martinez is saying that Bitcoin (BTC) is flashing a bullish signal amid the flagship cryptocurrency resting at a level last witnessed in early May.
Martinez tells his 65,300 followers on the social media platform X that every time the Relative Strength Index (RSI) indicator has slid into “oversold territory” over the last two years on the daily chart, Bitcoin has shot up by at least 60%.
The RSI is a momentum oscillator used to determine whether an asset is oversold or overbought. The RSI’s values range from zero to 100 with the level between 70 to 100 indicating that an asset is overbought while the zero to 30 level indicates that an asset is oversold.
Martinez highlights that Bitcoin’s daily RSI flashed oversold readings in August 2023 before igniting a nearly 200% surge from around $25,000 to its all-time high above $73,000.
“With BTC now below $62,000 and the RSI in oversold territory again, it might be a prime opportunity to buy the dip!”
Bitcoin is trading at $61,827 at time of writing.
Martinez also says that Bitcoin’s Market Value to Realized Value (MVRV) metric also indicates that the flagship crypto asset could potentially appreciate as it has dipped to a negative value. The MVRV compares the current market cap of Bitcoin to its realized capitalization (which is calculated based on the price at which Bitcoin was bought). When the MVRV value drops below zero, it indicates oversold conditions.
“Since February 2023, the Bitcoin MVRV Ratio has dipped below -8.40% on four occasions, triggering BTC price jumps of 63%, 100%, 92%, and 28%.
Currently, with BTC priced under $60,000 and the MVRV Ratio at -8.96%, this might be an ideal time to buy the dip!”
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The post Bitcoin (BTC) Flashing Signal That Led to Nearly 200% Rally in August 2023, According to Crypto Analyst appeared first on The Daily Hodl.
