Technical signal buy for Bitcoin; What is the next step ?

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Bitcoin (BTC) has seen significant growth since the start of the year; however, some of those gains have been lost in recent weeks, with its price dropping from over $30,000 to just over $26,000, leaving many in the space divided on its future price action.

Despite the price drop, crypto analyst Ali Martinez identified a buy signal on Bitcoin’s 4-hour chart. After spotting a bullish Relative Strength Index (RSI) divergence pattern developing, Martinez said BTC could hit $27,570, implying a potential upside of 4.5% from current levels.

However, he noted that BTC could also swing either way, depending on whether it can hold above the current $26,000 support level, the crypto expert added in a tweet on Friday, May 12. If not, Bitcoin could drop 4.49% to $25,200.

Buy the dip! ?

The TD Sequential shows a buy signal on the #Bitcoin 4hr chart, while a bullish RSI divergence develops. If $BTC can hold above $26,000, expect a rally to $26,860 or $27,570.

Failure to hold above this support level could trigger a decline to $25,200 for #BTC pic.twitter.com/PmSxWXnEVC

— Ali (@ali_charts) May 12, 2023

The TD Sequential shows a buy signal on the #Bitcoin 4hr chart, while a bullish RSI divergence develops. If $BTC can hold above $26,000, expect a rally to $26,860 or $27,570. Failure to hold above this support level could trigger a decline to $25,200 for #BTC.

– Ali Martinez wrote in the tweet.

TD Sequential refers to a well-known technical analysis (TA) instrument used to identify the exact moment of trend exhaustion and possible price reversal.

Why is Bitcoin down right now?

Another well-known crypto trading expert, Michael van de Poppe, said Bitcoin is showing signs of weakness right now, while altcoins continue to recover from a major retracement. He believes BTC needs to recover the $26,500-$26,800 price range before hitting long positions. Otherwise, the cryptocurrency may plunge to $25,000.

At press time, Bitcoin stood at $26,362, down 3.6% in the past 24 hours. The drop comes amid a sell-off in the market triggered by a number of factors. One of them is the drop in Bitcoin fees which have recently reached dizzying levels. This decline now leads to delayed sales by market players.

Bitcoin 1 day price chart. Source: Finbold

Apart from that, the recent weaker than expected inflation report might also have contributed to the sell-off, despite the initial push higher in cryptocurrencies right after the inflation data was released.

Despite the recent price crash, bitcoin remains up almost 60% since the start of 2023. The world’s leading crypto coin has seen a sharp rebound this year after a disastrous 2022 that sent crypto prices plummeting to multi-year lows.

Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.

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