Bitcoin Signals “Perfect Time to Buy” After Taking a Trip Below $60K

Bitcoin Signals “Perfect Time to Buy” After Taking a Trip Below $60K

Bitcoin continues its sell-off on Thursday, June 27 as it trades at $60,617 in a second bearish trading session. BTC is down 1.3% over the last 24 hours, extending the weekly losses to 7.3% and analysts believe that dip provides a “perfect time to buy” the big crypto.

BTC/USD daily chart. Source: TradingView
BTC/USD daily chart. Source: TradingView

With this drawdown, the daily Relative Strength Index (RSI) has dipped toward the oversold region, reaching 25 on June 24. According to popular analyst Ali Martinez, this trend-following oscillating indicator has provided investors with a perfect opportunity to buy the dip.

Martinez shared the following chart showing that everytime the RSI dipped below 30 on the daily timeframe in the past, the BTC price has gone on to make massive moves upward.

“Imagine having one indicator that signals the perfect time to buy the #Bitcoin dip,” he wrote, “study the daily $BTC RSI!”

BTC daily RSI. Source: Ali Martinez
BTC daily RSI. Source: Ali Martinez

Fellow analyst Moustache shared similar sentiments saying that the Better RSI indicator has turned red, signalling that BTC has “”reached the local bottom.”

“For the entire history of $BTC, the monthly RSI has consolidated in this channel. Every cycle top and cycle bottom,” declared YouTube analyst Donovan Jolley in a June 26 post on X.

Jolley added that he believes BTC is in the “final sell off' before price discovery” based on current market conditions/sentiment.

Data from Alternative.me, a platform that tracks “emotions and sentiments” around cryptocurrency reveals that the crypto market sentiment has dropped into the “fear” zone.

Bitcoin Crypto and Fear Index. Source: Alternative.me
Bitcoin Crypto and Fear Index. Source: Alternative.me

This data was corroborated by Ali Martinez who noted that the “market sentiment has turned into fear” urging his followers to “be greedy when others are fearful!”

Alternative says that even though “extreme fear can be a sign that investors are too worried,” it could provide a good “buying opportunity.”

How low can Bitcoin price go?

At the time of writing, BTC price was trading at $60,726 and sat on immediate support provided by the $60,000 major support level.

Note that a daily candlestick close below this level would spell doom for the pioneer cryptocurrency with the swing low at $56,500 coming into picture.

BTC/USD daily chart. Source: TradingView
BTC/USD daily chart. Source: TradingView

The RSI was still in the oversold region at 30, suggesting that the sellers were still in full control of the price.

Despite this, the oversold conditions indicated that the price may soon run out of steam as more buyers enter the market and buy BTC on the dip. If this happens, the price will rise from the current levels to kick-start a recovery.

Key levels to watch on the upside are the $62,000 resistance level, the 200-day EMA at $64,000, the 50-day EMA at $64,460 and the 100-day EMA at $65,565. A rise above the $65,000 level is needed to secure the uptrend and bring the sell-off to an end.

Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.

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