Bitcoin and Ethereum Show Signs of a Bullish Reversal
- Bitcoins Relative Strength Index (RSI) is nearing a breakout from a long-term downtrend, signaling a potential bullish shift.
- BTC continues to hold support at $78K-$80.7K and could rally to fill the $82,245-$87,000 CME gap.
- ETH has dropped into a historical demand zone, which previously triggered bullish reversals, with a target of $3,900.
A leading crypto commentator is of the view that Bitcoin (BTC) and Ethereum (ETH) have likely reached their local bottom and that both assets could be positioned to bounce in value at some point in time.
Rekt Capital, a social media influencer with more than 540,000 followers on platform X, posted comments to his audience indicating that he was looking to a key technical indicator: the Relative Strength Index (RSI). The RSI, a measure of momentum that indicates if an asset is overbought or oversold, has been positive for Bitcoin. The analyst explained that Bitcoins RSI is poised to break through a downtrendline that began in November 2024 and could indicate a bullish reversal of the top cryptocurrency.
Can the daily RSI break its downtrend dating to November 2024? Rekt Capital posed, suggesting that if Bitcoins RSI does indeed break this trend, it could signal a significant shift in market momentum.
Bitcoin Eyes $87K as CME Gap Signals Rally
Looking at prices, Rekt Capital is of the opinion that Bitcoin may be heading for a rally that will close a CME gap. The CME gap is the gap between Bitcoins closing price on Friday and Mondays opening price on the Chicago Mercantile Exchange. Traders tend to expect that such gaps will be closed, and Rekt Capital pointed out that Bitcoin may target the $87,000 level.
Bitcoin continues to successfully retest CME gap as a level of support (orange box, $78,000-$80,700). More notably though is that BTC has been doing so at a higher low (black). If that continues, BTC will soon be able to close $82,245-$87,000 CME gap up top (orange circle), Rekt Capital explained.
As of writing, Bitcoin is trading at $85,510, with a 24-hour trading volume of $76.6 billion and a market capitalization of $1.70 trillion. The asset has seen a 1.79% increase in price over the last 24 hours.
Rekt Capital observed that second-largest market-capitalized cryptocurrency may be beginning a new bull cycle after dropping to a record price level of support. The level of support, seen as pale blue areas on charts, previously acted as a takeoff point to bullish upswings.
Ethereum Dips Into Support With $3,900 Target
Ethereum has fallen into this historical demand zone (light blue). If price can create enough of a reaction here, then ETH will be able to recapture the $2,196-$3,900 macro range (black). If ETH does that prior to the March monthly close, then this entire sub-$2,200 downside would be a downside wick, Rekt Capital explained.
With Ethereums price action showing signs of stabilizing near key support levels, traders and investors will be closely watching whether ETH can reclaim higher price levels and confirm the bullish outlook.
In summary, Rekt Capital research suggests Bitcoin and Ethereum have likely reached turning points in their market cycles. As both assets have bullish signals flickering on them, a likely price bounce can be spotted on the horizon for both leading cryptocurrencies with traders offered new options in upcoming weeks.
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Read more: https://www.tronweekly.com/bitcoin-and-ethereum-show-signs-of-a-bullish/
Text source: TronWeekly
