The recent downturn, in the price of Bitcoin BTC -1.93% has been accompanied by a decline over the 24 hours. Similar trends have been observed in Ethereum ETH 0.00% and the altcoin market. Bitcoins price has dropped back to its point, which is around $42,000. Unlike before the RSI indicator has not fallen below 30. Currently hovers around 40. It is possible that there could still be a decline.
While price is a factor it’s important to examine the white moving average of M200, which currently stands at $41,700. By looking at a timeframe since mid October it becomes evident that Bitcoins price has never dropped below this level making it a significant support level. Unless there is a drop in price Bitcoin is expected to find strong support around $41,700.
When considering the RSI indicator dipping below 30 or lower to indicate an area there might be potential for a rebound in Bitcoins value. When observing the liquidation heatmap, for Bitcoin, a level to watch out for is $41,500. If this level is reached or breached it could suggest that Bitcoin has broken below M200 and may present a short term buying opportunity.
Considering the expiration of $10 billion, in options today there could be some developments from the SEC and spot ETF applicants. It’s worth noting that these institutions were given a deadline of December 29 to make modifications, which could potentially lead to market volatility. From what I know it seems that RC has taken action and recently submitted their revised application.
Turning our attention to Ethereums price performance it has been showing strength compared to Bitcoin. As I mentioned yesterday Ethereums RSI indicator was already in a state making it less favorable for buying at that time. However throughout December there were three instances when favorable buying opportunities emerged.
Therefore it becomes crucial to take advantage of opportunities whenever they arise even if one hasn’t accumulated a significant amount of capital beforehand. With small funds involved participating in an upward trend, with positive market sentiment can still bring a strong sense of involvement.
There have been rumors circulating about Blackrocks spot ETF receiving approval. Following that speculation we were still experiencing a bear market. Leaning towards the possibility of the market being overheated and expecting considerable price corrections.
Since then Bitcoin hasn’t undergone any adjustments yet; however there might be a correction once the spot ETF is officially approved as suggested by Cathrine Wood.Before the halving occurs it’s important to remain cautious. Once a significant shakeout happens we will officially enter a large scale bull market.
As, for the altcoin Sol its price is currently experiencing a decline. It’s natural to see some profit taking after an trend. The RSI has also returned to a level. In December this marks the occasion where Sols RSI has reached this level and each time it has bounced back.
Therefore it is reasonable to expect Sol to start rising from here onwards. If Sol follows the pattern observed at the end of November we have reason to anticipate momentum in its upcoming rebound. An RSI value of 30 indicates market weakness. Also signals a strong demand for a rebound. While there might still be some room for Sols price to fall conservatively unless there is a sell off by players causing a price crash.
Since mid October this marks the time that Sols RSI has reached this level. There were two instances, in both November and December where it touched the level of 30 before experiencing a price rebound.
There’s another project called Avax that caught my attention. Its RSI is currently, in oversold territory hitting 30, which I believe suggests a demand for a rebound. If we look at the price movement since mid October Avaxs EMA 200 stands at around $34, which is a price level. If the price continues to decline and breaks below this moving average it could potentially invalidate my view and indicate the end of the upward trend.
The situation with FTM is similar to Sol in terms of RSI not approaching the level of 30 throughout December. However in months whenever the RSI experienced dips like this successful rebounds followed. To err on the side of caution it would be prudent to wait for the market to actually reach that oversold level of 30 before considering any action.
Otherwise taking action prematurely might increase the risk involved. FTMs plans for network upgrades year are seen as signals as long as there is a narrative and room for speculation. However there is some concern, about whether or not the project itself will generate buzz.