The latest installment of his video The analysis of a title “BITCOIN’S One Indicator Signaling LAST Major Dip,” Dan Gambardello, an acclaimed crypto analyst on YouTube with over 370,000 subscribers, dives deep into Bitcoin’s latest price movements to determine what might be its final big dip. The Bitcoin market is now fearful of a further price drop after the Bitcoin dropped to as little as $60,000.
Bitcoin: The final leg down?
Gambardello highlights the importance of the six-hour and daily charts. Bitcoin, on the daily chart currently tests the 50-day moving median, which is often used as a gauge of short-term markets sentiment.
The analyst is primarily focused on the Relative Strength Index, a momentum indicator used to determine the rate and changes in price movement. This oscillator has reached oversold levels. Gambardello believes that the RSI crossing oversold levels is a traditional bullish sign and could indicate an end in sight to the current drop.
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“The bottom is actually, I think, close. There could be some type of capitulation in the very short term, but I think there could be a very strong bounce after that happens,” Gambardello stated, suggesting that even though the market was in turmoil immediately following the Israel-Iran conflict newsFundamentals points to a future robust recovery.
Gambardello stated via X: “Nothing quite like a six-hour oversold RSI right at the start of bull season. It’s also great for the season of bulls.”
His analysis of previous market behavior under similar circumstances supports this assertion, which reinforces the cyclical dynamics of Bitcoin. Gambardello, using historical data as a guide, highlights Bitcoin’s behavior in Octobers past, noting the pattern of early declines and strong recoveries at the end of each month.
“October will close green. It’s always [like this] with the dip. People are just freaking out. I guess that’s it, but this gives us a little time. We’re getting all these red candles going into October, give us another week, maybe even two and we could get a pump, a breakout to the upside to end October,” Gambardello claims.
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Gambardello goes on to discuss the possible scenarios surrounding Bitcoin’s trendline, which has been a support level for the last six months. He speculates that Bitcoin’s lower trendline could serve as a solid support level if it approaches the line again. It would mark the end of a significant decline before an upward trend.
One final touch to the trendline can bring the BTC down as low as $50,000. Gambardello, however, thinks this scenario is unlikely as the 6-hour RSI already reached oversold terrain while BTC currently bounces off of the 50 day moving average.
Gambardello refers also to Bitcoin’s performances in previous halving-years, where bull markets are usually followed, like in 2016 and in 2020. Gambardello says that 2019 could have a similar trend. “This is not a Halving year. In October 2016, we saw what happened during the Halving year in 2020. “Will it repeat itself?”
Bitcoin is currently trading for $60,899.
Featured Image created using DALL.E and chart from TradingView.com
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Source: www.newsbtc.com
