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Breaking News: Bitcoin Slides Toward $85,000 Despite Progress On US Crypto Market Structure Bill
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Breaking News: Bitcoin Slides Toward $85,000 Despite Progress On US Crypto Market Structure Bill

Bitcoin Breaks Above $26,000, A Stronger Bounce Is Imminent Says This Metric

Reynaldo Marquez
Reynaldo Marquez
Last Updated: June 11, 2024 2:28 pm
2 mins read
Bitcoin Price BTC BTCUSDT

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The Bitcoin price trades close to the $26,000 level during today’s trading session, as it has since last week. However, new data points to a potential breakout out of the current range and into previously unexplored territory in 2023.

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As of this writing, Bitcoin trades at $25,950 with sideways movement across the board. Other cryptocurrencies in the top 10 by market capitalization display similar price action as the sector enters another period of low volatility.

Bitcoin BTC BTCUSDT
BTC’s price moving sideways on the daily chart following a breakdown at $29,000. Source: BTCUSDT on Tradingview

Bitcoin On The Verge Of Making A Decision?

The co-founder of crypto analytics firm Glassnode, Yann Allemann, recently shared data that could hint at a potential rebound. Via social media X, Allemann pointed at Bitcoin’s Relative Index Strength (RSI), a metric used to measure when an asset has entered overbought or oversold territory.

BTC’s recent downside price action pushed the RSI to a historical oversold level, 28. The chart below shows that almost every August with a negative RSI and a BTC monthly return north of 10% leads to a sideways September but to a green October.

If the price of Bitcoin moves in tandem with its history, this decline in performance and RSI could hint at massive gains for the cryptocurrency in the coming two months. The Glassnode co-founder stated the following:

Past trends suggest that such movements often indicate the potential for upward price shifts. This implies that as sellers grapple with further drops, the stage might be set for a reversal in the near future.

Bitcoin price BTC BTCUSDT
Source: Yann Allemann (@Negentropic_) on X

Also, the chart shows that Bitcoin rarely sees two Octobers in the red following a bear market as the one experienced in 2022. This fact adds to the bullish thesis for Bitcoin as 2023 enters its final months, and new narratives increase their influence over the price action.

On the other hand, Allemann pointed at the increasing Open Interest (OI) for Bitcoin as prices trend sideways. The analyst believes that most OI comes from traders opening long positions.

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Crypto Currents: Can Whale Investors Bring PEPE Back In Action?

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As the OI rises, BTC will likely see another aggressive move. Short liquidation could push the cryptocurrency back into its previous range if the price trends to the upside. However, if the opposite occurs, the high amount of long positions could push BTC into crucial support.

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

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.

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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.

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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.

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