Bitcoin analyst eyes ‘V-shape’ BTC price bounce as RSI hits 5-year low
Bitcoin (BTC) stayed stubbornly anti-trend on Aug. 22 as $26,000 became a magnet for intraday BTC price action.
Data from Cointelegraph Markets Pro and TradingView tracked a third day of sideways performance for BTC/USD.
Despite being heavily oversold, according to relative strength index (RSI) readings, Bitcoin refused to offer any form of recovery bounce from levels last seen two months prior.
Market participants were restless, with popular trader Jelle referring to intraday movements as the “death chop.”
“At this stage it feels like a game of chicken to see who is going to make a move to break the chop,” monitoring resource Material Indicators said.
Analyzing liquidity on the Binance BTC/USD order book, Material Indicators noted a broad lack of liquidity, increasing the potential for a sharp move in either direction.
“The market is waiting to see if more bid or more ask liquidity is going to be attracted to the range,” it explained on X (formerly known as Twitter).
The implications were nonetheless potentially very serious for bulls, with a lower low (LL) apt to risk even the $20,000 support going forward.
“Needless to say, printing a LL in this TF has macro implications. Printing 2 LLs would push #BTC down to sub $20k levels,” Material Indicators concluded.
Zooming out, hope remained that Bitcoin could rescue its overall uptrend.
Related: Bitcoin is in ‘new bull cycle’ — Metric that bottomed before 70% gains
In a dedicated YouTube update on Aug. 22, Michaël van de Poppe, founder and CEO of trading firm Eight, noted the heavily oversold signals being generated by RSI.
On 12-hour timeframes, the RSI measured less than 19 at the time of writing — near its lowest levels since the 2018 bear market bottom. Daily levels were
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