The Relative Strength Index (RSI) is an important indicator for any cryptocurrency, and bitcoin is no different. Since the pioneer cryptocurrency has been on the market the longest, the abundance of data allows this indicator to be used to try and determine where the price could be headed next. This time, the indicator is turning bearish, meaning that the bitcoin price could be headed for a further decline from here on out.
Analyst Says RSI Is Turning Bearish For bitcoin
Cryptocurrency analyst Alan Santana took to the website TradingView to bitcoin-s-Weekly-RSI/”>share A bearish development for the bitcoin price. The analysis, which focused on the relative strength index (RSI), shows a continuation of the bearish trend as bitcoin is poised to fall further.
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The cryptocurrency analyst, using the weekly chart of bitcoin, shows that the RSI is actually showing a 3-year long bearish divergence. This is supported by the RSI chart which showed a continuous decline throughout the year 2024 after reaching a local peak at the beginning of the year.
bitcoin’s RSI has fallen by around 42% since the start of the year, dropping from a high of 88 to 50.6 at the time of analysis. However, Alan Santana uses a longer time frame, from 2021 to 2024, which shows a bearish divergence in this indicator.
This bearish divergence has arisen as the RSI indicator made a lower high in 2024 compared to the 2021 peak of 95. According to the analyst, this means that the RSI indicator is now turning bearish for the first time since August 2023. This makes it the most bearish bitcoin indicator in a year.
How far will the btc price fall?
At the time of analysis, the bitcoin price had already seen a brutal drop from $70,000 to below $60,000 before a minor recovery at the time of writing. However, the cryptocurrency analyst does not believe this is the end and warns investors to expect a further drop.
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According to the chart, Alan Santana expects the bitcoin price to drop by more than 20% from now on once again. This would mean a price drop below $50,000. The cryptocurrency analyst places the lowest point of this drop at around $44,000.
If this forecast were to materialize, it would mean that the price would revisit the $40,000 level for the first time since January 2024. However, it’s not all bad news as the cryptocurrency analyst explains that “This, and other signals, are telling us that there is room for lower prices – much lower – before we experience new highs and explosive growth.”
Featured image created with Dall.E, chart from Tradingview.com
