Bitcoin (BTC) Deep in Oversold Territory: Is the Monster Rally About to Begin?
Bitcoin's bleeding might finally be over—technical indicators scream 'oversold' as whales start accumulating. Are we on the verge of the next parabolic move?
### The Oversold Signal Flashes Red (or Green?)
RSI levels haven't been this depressed since the last cycle's bottom. History rhymes: BTC tends to rip 150%+ within months after these extremes.
### Wall Street's Waiting Game
Institutional money lurks like a bored hedge fund manager watching Bloomberg terminals—ready to FOMO in once retail capitulates. Classic.
### The Catalyst No One's Talking About
Macro tides are shifting while Tether's printer gets a workout. When liquidity faucets open, crypto always drinks first.
Time to load up? The charts say yes—but remember what happens every time normies start 'buying the dip' after a 40% crash.
$BTC price hits bottom of bull flag
Source: TradingView
The short-term price chart for $BTC shows that the bull flag is now completely valid. The recent dip down to the region of $114,000 has put the third clear touchpoint onto the bottom of the bull flag. The struggle between the bulls and the bears has now reached its peak. If the bears can continue to force the price down and below the lower bull flag trendline and then confirm the breakdown, things could get very interesting, with a further dip down to $112,000 probably following.
Notwithstanding, this does look like what could be an excellent entry for traders looking to establish a long position on $BTC. Obviously, a stop loss below the lower trendline of the bull flag WOULD provide protection if things did go pear-shaped.
The Stochastic RSI indicators are at the bottom, ready to turn back up, and the Relative Strength Index (RSI) on this time frame has its indicator just about to enter oversold territory.
Something to watch out for could be one last dip that shoots below the bottom of the bull flag, aimed by market manipulators to flush out the stops of those going long. If this happened, it could leave a candle wick to the downside behind it, but the candle body would be likely to close within the confines of the bull flag.
Bollinger Bands signal big move
Source: TradingView
As discussed in Thursday’s Bitcoin article, the Bollinger Bands had constricted to one of the most narrow points in quite some time. A big MOVE in one direction or the other looked as though it was about to occur. On Friday, this appears to be happening as the jaws of the bands are now starting to open wider. With a downward impulse currently in play, it could be that the big move is to the downside. That said, there is still time for a ricochet back to the upside. Time will tell.
$109,000 is bull market platform for price structure
Source: TradingView
The weekly time frame is at a critical point. The Stochastic RSI indicators are angled downwards and could be about to begin their descent back to the bottom, draining price momentum as they fall. How the indicator lines close at the end of play on Sunday can be crucial for the price over the next weeks and months.
Looking at the price action in the main chart it can be seen that should the bull flag break down, the top of the previous bull flag at $112,000 could be the first pitstop. That said, the much stronger support at $109,000 would be the key level for the bulls to hold. This is the platform holding up the bull market price structure. If this were to fail, it could potentially signal the end of the bull market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
