Cryptocurrency News

This Technical Indicator Predicts Another 30% Drop In Bitcoin

Throughout the past couple of days, we saw Bitcoin’s price move in a fairly tight range between $7,800 and $8,000. However, the cryptocurrency also touched an important historic indicator on the 3-Day chart, which, as pointed out by a popular trader, usually leads to a further 30 percent price decline.

Bitcoin Touching The 92-95 RSI

The world’s largest cryptocurrency, Bitcoin, has continued to trade in the range between $7,800 and $8,000 for a few days now. Currently, it appears that bulls are unable to shatter the $8K resistance.

As Cryptopotato recently reported, however, the cryptocurrency also managed to hold the support at around $7,500, which could be considered as a good sign.

However, a popular Bitcoin trader took to Twitter that the cryptocurrency has touched an important technical indicator.  According to Crypto Thies, BTC has touched the 92-95 RSI on the three-day chart. He outlines that every time Bitcoin does so, the price dumps more than 30 percent over the following months.

Should Bitcoin’s price lose another 30 percent of its value at the moment, it would sink down to around $5,400. Interestingly enough, this is an area that another trader recently warned about. According to him, a dip below $5,400 will be considered as a serious bear signal.

Is There A Silver Lining?

First of all, it’s important to note that technical indicators not always predict the precise movement of the price. This is especially true for a market as volatile and as nascent as the cryptocurrency one.

On another note, as outlined above, Bitcoin has so far managed to hold strong at the support level of around $7,500. If the cryptocurrency manages to hold its grounds and doesn’t decrease with 30 percent despite touching the 92-95 RSI as it has done historically so far, this could also be considered as a strong bullish signal.

In any case, it will be very interesting to see whether or not follows its historical pattern after touching the 92-95 RSI on the 3D chart.


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