Is This The Perfect Time To Buy Bitcoin? TD Sequential And RSI Suggests So

Ronaldo Marquez

Last Updated: June 11, 2024 8:15 am

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin (BTC) investors have been closely monitoring the cryptocurrency market in recent days due to Bitcoin’s significant drop in price. The market’s largest cryptocurrency has shown a downtrend in its price action and has lost its key support level at $27,200, which was previously noted by the 50-day moving average (MA).

Despite the bearish trend, trader and analyst Ali suggests that there may be some hope for bulls. Though the market is currently in a state of decline, Ali believes that there is still a chance for BTC to experience a reversal shortly.

Buy The Bitcoin Dip?

Ali points to the TD Sequential indicator on the Bitcoin 4-hour chart, which has shown a buy signal. In addition, a bullish divergence is developing on the Relative Strength Index (RSI), indicating a potential reversal shortly.

Bitcoin has been experiencing a period of volatility, with the cryptocurrency facing a strong resistance level at $28,000 in the past few days, following the release of the Consumer Price Index (CPI) rates by the Federal Reserve (Fed).

Although trader and analyst Ali believes that if Bitcoin can hold above the $26,000 support level, there could be an upswing to either $26,860 or $27,570. On the other hand, Ali suggests that if Bitcoin fails to hold above the $26,000 level, it could trigger a further drop to $25,200.

However, there is some good news for Bitcoin bulls, as the 200-day moving average (MA) is currently placed at $24,700. This level could potentially act as a crucial threshold for BTC, serving as a bottom line for the cryptocurrency in the short term.

Bitcoin And Crypto Market Vulnerable To Short Squeeze?

According to the latest report by the Singapore-based digital asset trading firm, QCP Capital, this week’s sell-off has caused Bitcoin to fall through the head and shoulders trendline, but a close below $26,500 is still preventing a larger breakdown.

Additionally, Bitcoin has a negative divergence on momentum indicators, leading QCP Capital to be biased towards a near-term break lower, potentially to the $25,000 mark and then to the $20,000-$22,000 level.

Despite this, QCP Capital views the lower level of $20,000-$22,000 as a high-conviction medium-term buy zone. The firm has even sold physically settled puts at this level before, indicating its confidence in the cryptocurrency’s long-term prospects.

Furthermore, according to Chart 3 in the report, as seen below, an increase in volatility has historically led to a strengthening of the USD and a weakening of risk assets such as BTC.

The report notes that while the outcome of the current political drama in Washington is uncertain, the market’s response in terms of implied volatility across assets will be key in determining the next trend direction.

The report also suggests that a sharp increase in volatility could lead to a move lower for BTC and other risk assets. This could be a concern for investors who have seen BTC reach new annual highs in 2023. However, volatility can create opportunities for traders who can navigate the market’s ups and downs.

As of this writing, the largest cryptocurrency in the market, BTC, is currently trading at $26,300, down by 2.1% in the last 24 hours.

Featured image from iStock, a chart from TradingView.com

Ronaldo Marquez

Ronaldo is an experienced crypto enthusiast dedicated to the nascent and ever-evolving industry. With over five years of extensive research and unwavering dedication, he has cultivated a profound interest in the world of cryptocurrencies.

Ronaldo's journey began with a spark of curiosity, which soon transformed into a deep passion for understanding the intricacies of this groundbreaking technology.

Driven by an insatiable thirst for knowledge, Ronaldo has delved into the depths of the crypto space, exploring its various facets, from blockchain fundamentals to market trends and investment strategies. His tireless exploration and commitment to staying up-to-date with the latest developments have granted him a unique perspective on the industry.

One of Ronaldo's defining areas of expertise lies in technical analysis. He firmly believes that studying charts and deciphering price movements provides valuable insights into the market. Ronaldo recognizes that patterns exist within the chaos of crypto charts, and by utilizing technical analysis tools and indicators, he can unlock hidden opportunities and make informed investment decisions. His dedication to mastering this analytical approach has allowed him to navigate the volatile crypto market with confidence and precision.

Ronaldo's commitment to his craft goes beyond personal gain. He is passionate about sharing his knowledge and insights with others, empowering them to make well-informed decisions in the crypto space. Ronaldo's writing is a testament to his dedication, providing readers with meaningful analysis and up-to-date news. He strives to offer a comprehensive understanding of the crypto industry, helping readers navigate its complexities and seize opportunities.

Outside of the crypto realm, Ronaldo enjoys indulging in other passions. As an avid sports fan, he finds joy in watching exhilarating sporting events, witnessing the triumphs and challenges of athletes pushing their limits. Furthermore, His passion for languages extends beyond mere communication; he aspires to master German, French, Italian, and Portuguese, in addition to his native Spanish. Recognizing the value of linguistic proficiency, Ronaldo aims to enhance his work prospects, personal relationships, and overall growth.

However, Ronaldo's aspirations extend far beyond language acquisition. He believes that the future of the crypto industry holds immense potential as a groundbreaking force in history. With unwavering conviction, he envisions a world where cryptocurrencies unlock financial freedom for all and become catalysts for societal development and growth. Ronaldo is determined to prepare himself for this transformative era, ensuring he is well-equipped to navigate the crypto landscape.

Ronaldo also recognizes the importance of maintaining a healthy body and mind, regularly hitting the gym to stay physically fit. He immerses himself in books and podcasts that inspire him to become the best version of himself, constantly seeking new ways to expand his horizons and knowledge.

With a genuine desire to become the best version of himself, Ronaldo is committed to continuous improvement. He sets personal goals, embraces challenges, and seeks opportunities for growth and self-reflection. Ultimately, combining his passion for cryptocurrencies, dedication to learning, and commitment to personal development, Ronaldo aims to go hand-in-hand with the exciting new era that the emerging crypto technology is bringing to the world and societies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.