Renowned crypto analyst Ali Martinez took to X and shared with his followers that Bitcoin’s (BTC) Relative Strength Index (RSI) is again in the oversold territory. The analyst says it may be a price opportunity to buy the dip. Martine highlights that BTC’s daily RSI has hit the oversold territory three times in the past two years. In each of the three instances, BTC’s price has surged by 60%, 63%, and 198% respectively.
BTC briefly went below $60,000 on Monday but has since recovered the $60,000 level. BTC continues to trade in the red zone and is down by 3% in the daily chart, 7.5% in the weekly chart, 10.4% in the 14-day chart, and 12.3% over the previous month.
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BTC’s latest dip is likely because of miners selling their holdings as the price of mining one Bitcoin surpassed the $86,000 level last week. There has also been a lack of fresh capital entering the market and increasing investor fatigue.
Will Bitcoin recover this week?
Martinez claims that the price of Bitcoin has consistently risen above its mean mining cost in the past. The average cost of mining Bitcoin last week was $86,000, indicating that the coin will likely surpass that amount and set a new high.
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Specialists at CoinCodex offer a bullish forecast for Bitcoin in the next weeks. The platform predicts that BTC will reach $81,972 on July 19. 2024, a 35.19% rise from current levels
The US had a decrease in inflation in May as well, which may reignite hopes for a fall in interest rates. A decrease in inflation may boost investor confidence and lead to a greater inflow of capital into riskier assets such as Bitcoin.