This Technical Indicator Predicts Another 30% Drop In Bitcoin

Throughout the past couple of days, we saw Bitcoin’s price move in a fairly tight range between $7,800 and $8,000. However, the cryptocurrency also touched an important historic indicator on the 3-Day chart, which, as pointed out by a popular trader, usually leads to a further 30 percent price decline.

Bitcoin Touching The 92-95 RSI

The world’s largest cryptocurrency, Bitcoin, has continued to trade in the range between $7,800 and $8,000 for a few days now. Currently, it appears that bulls are unable to shatter the $8K resistance.

As Cryptopotato recently reported, however, the cryptocurrency also managed to hold the support at around $7,500, which could be considered as a good sign.

However, a popular Bitcoin trader took to Twitter that the cryptocurrency has touched an important technical indicator.  According to Crypto Thies, BTC has touched the 92-95 RSI on the three-day chart. He outlines that every time Bitcoin does so, the price dumps more than 30 percent over the following months.

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Should Bitcoin’s price lose another 30 percent of its value at the moment, it would sink down to around $5,400. Interestingly enough, this is an area that another trader recently warned about. According to him, a dip below $5,400 will be considered as a serious bear signal.

Is There A Silver Lining?

First of all, it’s important to note that technical indicators not always predict the precise movement of the price. This is especially true for a market as volatile and as nascent as the cryptocurrency one.

On another note, as outlined above, Bitcoin has so far managed to hold strong at the support level of around $7,500. If the cryptocurrency manages to hold its grounds and doesn’t decrease with 30 percent despite touching the 92-95 RSI as it has done historically so far, this could also be considered as a strong bullish signal.

In any case, it will be very interesting to see whether or not follows its historical pattern after touching the 92-95 RSI on the 3D chart.

 

The post This Technical Indicator Predicts Another 30% Drop In Bitcoin appeared first on CryptoPotato.

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