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.
Every-time $BTC has touched 92-95 RSI on the 3D chart since 2015, price dumps over 30% over the following months, before continuing onward.
We touched the same RSI range recently. Will this time be different? That would imply a touch to at least $6.5k if so. pic.twitter.com/vWr8tpHBgu
— Crypto Thies (@KingThies) June 10, 2019
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.
CryptoPotato Video Channel
View original post