Bitcoin (BTC): An imminent bullish recovery? August 21 analysis

The previous week was marked by a sharp decline in the crypto market. The leader in terms of market capitalization, BTC, recorded a 10% drop, closing the week at around $26500. What if this drop represented a buying opportunity for bitcoin (BTC), as a bullish recovery seems imminent? That’s precisely what the RSI and Hash Ribbons suggest.

Bitcoin (BTC), a possible recovery according to the RSI?

After a weekly close in the red, the bitcoin price is currently hovering around $26500 during a quieter weekend. Some are blaming this drop on SpaceX, while others are blaming it on Evergande’s bankruptcy. In any case, this drop in value could well be an opportunity for investors. Indeed, two key indicators are currently sending buy signals.

Firstly, the fall in Bitcoin (BTC) has driven the daily RSI into oversold territory. Historical observation shows that the BTC price has regularly experienced a significant rebound whenever the daily RSI has fallen below 30.

#Bitcoin $BTC marks the lowest RSI in over 20 months on the daily chart and at the same time hits the support line that was resistance for almost a year.

Each time the RSI has been <30, the price of $BTC has risen between 28% and 60% afterwards.

No reason to be bearish. pic.twitter.com/gl3Y4Emy1C

— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) August 20, 2023

If the same pattern repeats itself, a rise in bitcoin (BTC) to at least $34,000 could be on the cards. In a very optimistic scenario, the leading cryptocurrency could even reach $41,000.

Is it time to buy based on Hash Ribbons?

What’s more, Hash Ribbons are also sending out a buy signal with the return of the miners. Indeed, the famous blue dot is currently visible on the daily and weekly scale. This buy signal is of great importance, as it marks the end of the capitulation of miners, who had reduced their activity due to unfavorable market conditions.

#Bitcoin Hash Ribbons

BUY signal flashed for #BTC on the weekly timeframe. This is macro #Bullish 🚀

In addition #Bitcoin price is retesting the 18 EMA 🔴🫡 pic.twitter.com/I45dbjbSz2

— Titan of Crypto (@Washigorira) August 17, 2023

Thus, Bitcoin (BTC) could well experience a bullish recovery from its current price level, offering a buying opportunity for investors. Especially as BTC is currently at a critical support level: $26150.

Based on these two indicators and the price trend, investors can legitimately look forward to a future rebound. However, other analysts believe that it is actually Bitcoin ETFs that could propel the cryptocurrency towards a new bull market.