Is This Bitcoin’s Last Big Drop? Expert Points To Key Indicator
October 03 2024 - 8:30AM
NEWSBTC
In his latest video analysis titled “BITCOIN’S One Indicator
Signaling LAST Major Dip,” Dan Gambardello, a noted crypto analyst
with 370,000 subscribers on YouTube, delves into the latest price
action of Bitcoin to forecast what could potentially be the final
major dip. After dropping as low as $60,000 on Wednesday, the fear
of another deeper price crash has grabbed the Bitcoin market. Why
This Could Be The Final Leg Down For Bitcoin Gambardello emphasizes
the significance of the daily and six-hour charts. On the daily
chart, Bitcoin is currently testing the 50-day moving average, a
level that often serves as a litmus test for short-term market
sentiment. However, the analyst’s main focus is on the six-hour
chart’s Relative Strength Index (RSI), a momentum oscillator used
to measure the speed and change of price movements, which has hit
oversold levels. According to Gambardello, the RSI reaching
oversold territory is traditionally viewed as a bullish signal,
potentially indicating an approaching end to the current price dip.
Related Reading: Bitcoin Price Could Skyrocket To $118,000 By
Year-End: Here’s Why “The bottom is actually, I think, close. There
could be some type of capitulation in the very short term, but I
think there could be a very strong bounce after that happens,”
Gambardello noted, suggesting that despite the immediate market
turmoil following the Israel-Iran conflict news, the fundamentals
point towards an eventual robust recovery. Via X, Gambardello
added, “Nothing like a 6 hour oversold RSI at the beginning of bull
season. Also great during bull season.” This assertion is grounded
in his analysis of past market behaviors during similar conditions,
reinforcing the cyclical nature of Bitcoin’s market dynamics.
Drawing parallels to historical data, Gambardello highlights the
behavioral trends of Bitcoin in previous Octobers, noting a pattern
of initial declines followed by strong recoveries by the end of the
month. “October will close green. It’s always [like this] with the
dip. People are just freaking out. I guess that’s it, but this
gives us a little time. We’re getting all these red candles going
into October, give us another week, maybe even two and we could get
a pump, a breakout to the upside to end October,” Gambardello
claims. Related Reading: Will Israel-Iran Conflict Push Bitcoin
Further Down? Analysts Discuss Further deepening the analysis,
Gambardello discusses the potential scenarios around Bitcoin’s
lower trend line, a recurrent support level over the past six
months. He speculates that if Bitcoin approaches this trend line
again, it could effectively serve as a robust support level,
potentially marking the last significant downturn before a
sustained upward trend. Notably, one final touch of the trendline
could bring down the BTC price as low as $50,000. However,
Gambardello thinks that this is a less likely scenario as the
6-hour RSI has already hit oversold territory while BTC is
currently bouncing off the 50-day moving average. Moreover,
Gambardello refers to Bitcoin’s performance in past halving years,
which are typically followed by bull markets, as seen in 2016 and
2020. Gambardello suggests that the current year could follow a
similar trajectory. “This is a Halving year. We’ve seen what’s
happened in Halving years in 2020 and 2016 in October. Is it going
to repeat?” At press time, Bitcoin traded at $60,899. Featured
image created with DALL.E, chart from TradingView.com
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