Bitcoin continues to trade around 20% below its peak levels from the beginning of the year. The market shows positive signs indicating potential easing of selling pressure.
Potential Easing of Selling Pressure
Market analyst Rekt Capital highlights a decrease in selling volume in the cryptocurrency market, previously dominated by sellers over the past two weeks. This suggests that seller fatigue may be setting in. Maintaining the weekly RSI at 44 is seen as a technical sign suggesting that Bitcoin is nearing a price floor.
Positive Signals in Technical Indicators
An interesting development is occurring in Bitcoin’s daily chart: despite declining prices, the RSI is showing an upward trend. This divergence is termed 'positive divergence' in technical analysis and is seen as an early signal of a potential trend reversal.
Conclusion
Experts emphasize the importance of risk management as volatility persists. Current data supports the possibility of a short-term recovery in Bitcoin’s price.
Technical indicators and market trends indicate potential recovery for Bitcoin, though remaining volatility requires investor caution.
