- After hitting a six-week low on Monday at around $58,400, Bitcoin bounced back above $62,000, with its RSI flashing oversold and hitting its lowest in over a year.
- Some, like Robert Kiyosaki, have urged investors to HODL, while other analysts believe that if Bitcoin holds above $62,000, bulls will come in and push it to $63,500 by the end of the week.
After a disastrous start to the week, Bitcoin recovered Tuesday and reclaimed the $62,000 level. Analysts predicted that bulls would kick in and push it up further by the end of the week.
BTC trades at $61,343, slightly regressing after hitting a one-day high of $62,322 earlier today. Investors spooked by Monday’s decline have yet to reenter the market, with trading volume hitting $26.3 billion for the past day after a 33% decline.
The top crypto had a woeful start to its week, going from $64,000 on Sunday night to below $59,000 on Monday, its lowest price since the start of May. Some analysts blamed the impending Mt. Gox dump, while others alleged that the German government’s movement of half a billion dollars worth of BTC had spooked investors, as Crypto News Flash reported.
However, the top coin has recovered. One analyst captured the move on X, stating:
Looks like lots of coins changed hands yesterday — and key support is doing its job. If Bitcoin can lock in a lower-timeframe higher low today, I think we run it back to $63,500 before the week is out. Above that, and red Monday, green week becomes a reality.
What’s Next for Bitcoin?
Some key metrics indicate that Bitcoin’s best days could still be ahead. One is the relative strength index (RSI), which assesses market trends to determine whether an asset is overbought or oversold. Bitcoin’s RSI has remained high this year as its price has soared, indicating that it was overbought.
However, following the Monday dip, the RSI dropped significantly, with one analyst noting:
Bitcoin’s daily RSI has not been this low in nearly a year. In fact, the last time we saw oversold conditions was when BTC traded at $26,000.
Additionally, the Crypto Fear and Greed Index dropped drastically this week as investors were spooked by the dip. The index hit 30 points, its lowest since September last year when BTC was trading around $26,000. It has since recovered partially and stands at 46, which still signifies fear. Historically, such movements present buying opportunities and attract investors, pushing the demand and sparking a price rise.
Beyond the crypto industry, Bitcoin continues to get the support of renowned tech and finance figures. Celebrated author Robert Kiyosaki urged investors to HODL if they want to break free of the “employee” mindset.
Michael Dell, the founder of Dell Technologies and the world’s 14th richest person, has also joined the bandwagon.
This is a great account to follow @MeCookieMonster. Very entertaining
pic.twitter.com/RJFcNpCXrN
— Michael Dell (@MichaelDell) June 21, 2024
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