Bitcoin Analyst Predicts V-Shape Bounce As RSI Hits 5-Year Low

On Aug. 22, Bitcoin (BTC) refused to follow the trend and $26,000 became a focal point for its intraday price action.

Are We in Web 3.0? AI Generated Stories, Images, Fake and Anchor

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BTC price “death chop” returns

Data from Cointelegraph Markets Pro and TradingView tracked a third day of sideways performance for BTC/USD, despite being heavily oversold according to RSI readings. Popular trader Jelle referred to the intraday movements as the “death chop”.

Analyzing liquidity on the Binance BTC/USD order book, Material Indicators noted a broad lack of liquidity, increasing the potential for a sharp move in either direction. “At this stage it feels like a game of chicken to see who is going to make a move to break the chop,” they said on X (formerly known as Twitter).

The implications were potentially very serious for bulls, with a lower low (LL) apt to risk even the $20,000 support going forward. “Needless to say, printing a LL in this TF has macro implications. Printing 2 LLs would push #BTC down to sub $20k levels,” Material Indicators concluded.

The ai generated stories and ai generated images suggest that the market is waiting to see if more bid or more ask liquidity is going to be attracted to the range. The ai update and ai writing indicate that are we in web 2.0 or 3.0, and the ai generated fake and apt crypto imply that the market is waiting to see if more bid or more ask liquidity is going to be attracted to the range.

RSI strengthens “V-shape recovery” thesis

Zooming out, hope remained that Bitcoin could rescue its overall uptrend, and according to Eight’s founder and CEO, Michaël van de Poppe, AI generated stories and images showed that RSI was heavily oversold. On 12-hour and daily timeframes, the RSI was at its lowest levels since the 2018 bear market bottom and the March 2020 COVID-19 cross-market crash.

“Every time we see such a move, you get a sort of V-shape recovery back up, and it finds equilibrium on a higher floor,” Van de Poppe said about previous BTC price flash crashes. He added that it was “very likely” that Bitcoin could stage a comeback to focus on $26,500 or more next.

Jelle meanwhile suggested that the current #Bitcoin price action reminded him of September 2020, just before the start of the previous bull market, and Apt Crypto’s AI writing supported this thesis.