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A well-known cryptanalyst told what important indicator can help to accurately determine the bottom of the Bitcoin (BTC) market.
A trader under the pseudonym Rekt Capital reported that the BTC Relative Strength Index (RSI) reflects the levels reached in January 2015, December 2018 and March 2020, signaling that there may be a downward rebound on the horizon.
BTC is once again approaching the bottom of the bear market. When might that happen in this cycle?
The bottom of the bear market of 2018 was formed in 1461 days after the BMB of 2015. If the same symmetry repeats, the upcoming BMB will occur in January 2023.
An asset’s RSI is a momentum indicator that measures the latest price levels to determine whether an asset is oversold or overbought in a certain period of time.
Based on this indicator, the trader presented a scenario in which the bottom of the bear market occurs two months earlier than the predicted January 2023 in November, and as a reason he refers to the halving of bitcoin, which occurs every four years.
Rekt Capital presented a scenario in which it correlated the achievement of the bottom with past halvings:
BTC bottomed out in 2015 about 547 days before the second halving. BTC bottomed out in 2018 about 486 days before the 3rd halving.
If BTC reaches the bottom 487 or 548 days before the fourth halving in April 2024, then this bottom will take place until October or November 2022.
In conclusion, the trader said that the RSI data indicates that bitcoin is oversold, which means that those who bought during the multi-month bear market period are likely to be rewarded over the next cycle.
It is clear that BTC is entering an oversold state of RSI.
Historically, long-term BTC investors who bought under these conditions benefited from a high ROI over the many months that followed.
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