Bitcoin price is currently trading at a crucial juncture under $35K, a break above this key resistance could potentially push the top cryptocurrency back into bullish domains. A key indicator is on the verge of breaking out of the 6-month long downtrend which could potentially lead to a reversal from the current bearish price trends.
The RSI trendline has been on a downtrend since the start of the year. The RSI value is also looking to trade in the bullish zone and if it breaks the long-held trendline, Bitcoin could get back in the bullish zone it was before the May market mayhem.
Popular crypto analyst Willy Woo tweeted his TA chart pointing toward the impending RSI break. According to him, the break could happen at any time shortly.
Spotted in the wild. A rare TA chart from me.
I’m patiently waiting for this RSI trend line break. pic.twitter.com/FhQq38OPrF
— Willy Woo (@woonomic) July 6, 2021
It is important to note that the break of the trendline on the RSI chart generally precedes the break in trend on the price chart, which gives an early indication of the incoming trend reversal.
Bitcoin Price Continue to Show Trend Reversal Signs
Apart from the RSI trendline nearing a break, Bitcoin price has been forming several hammer candles over the past three weeks. A hammer candlestick is considered a trend reversal sign.
For the past three weeks, #BTC has been forming a wide variety of Hammer-like candlesticks
— Rekt Capital (@rektcapital) July 6, 2021
With the largest Grayscale unlock expected to take place on July 18, Bitcoin price is expected to become more volatile. JP Morgan has predicted that the price could see a further downtrend and revisit $25k levels. According to Morgan, the Grayscale Bitcoin Trust’s selling of its shares will put intensive pressure on the bitcoin spot market which may potentially lead to a sudden and drastic decline in the price of bitcoin.
While JP Morgan’s bearish outlook is nothing new, key on-chain metrics flash bullish signs. The exchange outflow has reached a 6-month high. The whale accumulation has also seen a sharp spike indicating big players are anticipating a bullish surge shortly. The current Bitcoin price trend is also quite similar to the mid of 2017 bull cycle following which BTC price rose nearly 10X.
Compare today to #Bitcoin mid-cycle in 2017 …#BTC saw a 10x from the 1.618 golden ratio last cycle.
In 2013 $BTC saw a 20x move.#YearofTheBULL is not over. Remember – you heard it here first. pic.twitter.com/uny8NEywX0
— 𓃓 YearoftheBULL 𓄀 #Bitcoin #Litecoin #infiniteQE (@misconfig_exe) June 29, 2021
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