- Investors expected a boom, but Bitcoin price plummeted due to hype-driven derivatives instead of spot trades.
- Breaking above $42,800 is crucial to avoid a possible bearish dominance.
- Low volatility and liquidity point towards Bitcoin going sideways for a few weeks, giving altcoins a chance to shine.
- A green Gaussian Channel and altcoin season index may suggest that altcoins might outperform Bitcoin soon.
- Historically low RSI might indicate a “buy the dip” moment before a potential upward rally, which is what is happening with Bitcoin
Many investors expected a Bitcoin boom last week when the spot Bitcoin ETFs were finally approved by the SEC. However, Bitcoin did the complete opposite of this and crashed all the way from $49,000 to about $41,000.
This has left many confused and wondering: “What comes next for Bitcoin?”, “Was the ETF hype a ‘sell the news’ event?”
To help answer these questions, here are five of the most useful Bitcoin nuggets from the internet this week.
The Bears Could Take Control If This Doesn’t Happen
According to a recent tweet from SKEW, one of the most famous analysts on Twitter, the previous spike in Bitcoin was mostly driven by derivatives and the ETF hype.
Skew says that this is unsustainable and that a proper rally should be driven by spot trades, to rally and sustain itself above the $42,800 zone.
In another tweet, Skew says that there is very limited liquidity on Bitcoin (likely due to all of that Bitcoin being locked up by the ETFs).
Skew concluded by saying that the bulls might have a chance if they manage to push Bitcoin up above the $42,800 zone.
However, anything other than this puts Bitcoin under its yearly open, leaving the door wide open for the bears to take control.
According to CoinMarketCap, Bitcoin currently trades at around $42,900 but will have to put in more effort to go further up and be unreachable by the bears.
We Might See Bitcoin Go Sideways A Little Bit Longer
Matthew Hyland, another crypto analyst on Twitter, had something similar to say about Bitcoin.
According to Hyland, Bitcoin may be about to go sideways from here for a while longer.
Hyland pointed towards the low volatility and liquidity issue on Bitcoin, stating that the last four times we saw this much volatility sickness on Bitcoin, its price action ranged for a minimum of three to four weeks.
Hyland ended by saying that the altcoins and Ethereum might take this opportunity to shine.
There Might Be Data To Support A Coming Altcoin Boom
Moustache, another popular analyst on Twitter, says that the Gaussian Channel for Altcoins has finally changed to green.
What does this mean?
It means that the altcoins may take advantage of Bitcoin’s sluggishness (like Matthew Hyland says), and may even steal Bitcoin’s thunder.
Moustache says that “this is one of the most bullish signals you can get”, and that this same indicator gave the “ultimate go signal” for the altcoins in 2016 and 2020 respectively.
We may have seen something similar when on the day of the Bitcoin ETF approvals, Bitcoin declined strongly while Ethereum and the rest went on a bullish rampage.
The altcoin season index from BlockchainCenter.net also shows that we might already even be in an altcoins season as we speak.
Could it be time to bag some Ethereum?
Bitcoin’s RSI Now Sits At Its Lowest Since October Last Year
Finally, on the list of bearish indicators for Bitcoin, we have its RSI.
Matthew Hyland again, says that Bitcoin’s RSI readings now sit much, much lower than the lowest point in October, right before Bitcoin made its first move above $30,000.
This could mean that the bears are at the height of their power over Bitcoin, and the bulls may need to exert a lot more effort to retake control of the market.
Overall, the RSI being this low could also signal a potent “buy the dip opportunity” for investors.
Bitcoin May Be About To Explode Upwards, Historically Speaking
Things aren’t all bad for Bitcoin. At least, not according to CryptoJelle.
In a recent tweet, CryptoJelle notes that the low RSI levels on Bitcoin may turn out to be a blessing in disguise.
CryptoJelle says that historically, pullbacks into lower RSI levels usually signal great buying opportunities before the price of the cryptocurrency rallies upwards again.
In essence, this could mean that the low RSI levels might turn out to be the final “all aboard!” signal for Bitcoin investors before the highly anticipated ETF rocket takes off to 2024’s yearly high.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.