Bitcoin price has been trying to recover after facing a significant dip. Earlier last week, Bitcoiners saw some unexpected plunges in the crypto market. With the leading crypto coin, several other major projects also lost significant value. Following the scenario, analysts noted that the BTC RSI is on route to repeat a trend break. Notably, such a trend sparked a massive price movement twice over the past year. Now, the asset circled the price level of $38k into Sunday as a trappy weekend still offered the chance of a solid weekly close.
Bitcoin price witnesses tempestuous scenario
According to data from CoinMarketCap, Bitcoin price is regaining the $38k mark after witnessing local highs above the level. Still few of the analysts in the cryptosphere deemed that although the asset showed a robust out of hours performance, it is as a frm bullish player playing without traditional market guidance.
Hence, experts highlighted that the water is still choppy for the flagship cryptocurrency to sail.
Analysts are looking at $37k to observe whether the price sustains there. And they underscored that if the price fails to sustain at such a level, Bitcoiners will test lows for daily bullish divergence to create.
However, if we hodl, we might see a breaker above $38,500 happening.
BTC won’t be able to close at $39.6k resistance
Although the Bitcoin price highs continued, the scenario does not seem like a slow return to form on daily time frames after its sub-33k lows. According to Bob Loukas, a trader, investor, and entrepreneur, strength of the asset lay in its multiple closes above the 10-day MA.
However, it is still deemed that hopes for a weekly close at the price level of $39.6k is unlikely. According to another analyst on Twitter, the market is full of breakout traders, and a force move would help bait them easily.
Investors are still excited
Matthew Hyland, a popular analyst, has noted yet more bullish cues coming from Bitcoin’s relative strength indicator. Indeed, across several chart timeframes, the RSI has hit its most oversold levels since the March 2020 crash.
The metric shows how likely a particular trend is to sustain. Following the fact, we should thank the modest rebound off the lows, RSI appears to be in the process of challenging a multi-month downtrend in place since November.
Hyland noted that the previous two breakouts of the last year have led to a massive bullish move.