Bitcoin RSI Hits Rare Low Against Gold, Analyst Predicts Potential Recovery

Market analyst Michael van de Poppe noted that Bitcoin's RSI against gold has dropped below 30 for the fourth time in history, previously coinciding with market bottoms in 2015, 2018, and 2022. This suggests a potential recovery phase.

Van de Poppe believes gold is overvalued compared to Bitcoin, indicating a possible shift from gold to Bitcoin investments.
The distance between Bitcoin and its 20-week moving average is large, historically leading to recovery rallies.

Bitcoin Price Movements

Bitcoin recently faced rejection at $90,000 and moved lower alongside declines in gold and US equities.
A move above $88,000 could boost trader optimism; key levels to watch are below $83,800 and potentially $80,500.
Market risks include upcoming US unemployment data, inflation figures, and a rate hike from the Bank of Japan, which historically affects Bitcoin negatively.
Glassnode reports worsening spot market conditions with declining trading volumes and futures open interest.

80% Crash Risk

Peter Brandt warns that Bitcoin has broken its parabolic trendline, suggesting potential for an 80% drop to $25,000 under tighter financial conditions.
However, institutional and long-term holdings have increased significantly, which may mitigate such a crash.
Bitcoin researcher Axel Adler Jr. notes BTC is in a correction phase after three years of growth.