Over the course of the past couple of days, we saw Bitcoin's price operate in a relatively tight range in between $7,800 and $8,000. Having said that, the cryptocurrency also touched a significant historic indicator on the 3-Day chart, which, as explained by a prominent trader, normally leads to a further 30 percent price downtrend.
Bitcoin Touching The 92-95 RSI
The world's leading cryptocurrency, Bitcoin, has continued to trade in the range between $7,800 and $8,000 for a few days now. At this time, it looks as if that bulls are not able to crack the $8K resistance.
As Cryptopotato not long ago reported, however, the cryptocurrency also managed to hold the support at around $7,500, which can be looked at as a good sign. However, a trendy Bitcoin trader took to Twitter that the cryptocurrency has touched an important technical indicator. According to Crypto Thies, BTC has touched the 92-95 RSI on the three-day chart. He details that each time Bitcoin does so, the price dumps at least 30 percent over the following months.
Every-time $BTC has touched 92-95 RSI on the 3D chart since 2015, price dumps over 30% over the following months, before continuing onward.
We touched the same RSI range recently. Will this time be different? That would imply a touch to at least $6.5k if so. pic.twitter.com/vWr8tpHBgu
— Crypto Thies (@KingThies) June 10, 2019
If as a result, Bitcoin's price lose another 30 percent of its value at the moment, it might decrease down to roughly $5,400. Surprisingly enough, this is an area that another trader recently cautioned about. According to him, a nose-dive below $5,400 will be analyzed as a serious bear signal.
Is There A Silver Lining?
First of all, it's relevant to bear in mind that technical indicators not always foresee the precise movement of the price. This is most notably true for a market as unstable and as nascent as the cryptocurrency one.
On yet another note, as laid out above, Bitcoin has until now managed to hold strong at the support level of about $7,500. If the cryptocurrency manages to hold its grounds and doesn't decrease with 30 percent regardless of touching the 92-95 RSI as it has done historically up until now, this could possibly also be considered as a strong bullish signal.
In any case, it will be rather interesting to see whether or not follows its historical pattern after touching the 92-95 RSI on the 3D chart.
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