BTC/USD Daily Chart (Bitstamp) – Source: TradingView
An overheated Relative Strength Index (RSI) in the daily chart could have marked the end of this latest wave of selling, as this momentum oscillator hit a low of 23 in November 22. Since then, it has been trending higher even though the price has traded relatively range-bound.
Interestingly, the Fear and Greed Index also hit a record low of 11 recently in November 2022. As we have mentioned in previous Bitcoin price predictions, this could be considered a buy signal, especially if paired with a divergent RSI.
In the past, record-low readings in the F&G have been good predictors of cycle bottoms. The last time we saw similar drops in this metric was in April this year. Back then, the price bottomed at $82,000 and went on to make a new all-time high just a few months after.
A Bullish Breakout Above $100K Is Crucial
Bitcoin has already found support three times at $85,000, making this the most relevant support to watch as the price bounces once again.
The $100,000 threshold remains the most relevant structural level to watch in the near term, as a break above it would effectively reverse the token’s downtrend. This level coincides with the 200-day exponential moving average (EMA), which makes a breakout even more relevant from a technical standpoint.
BTC has already attempted to make it out of its descending price channel once. Could this second attempt result in a meaningful push to higher levels?