Crypto Analyst: Bitcoin (BTC) Shows Signal Behind Nearly 200% Rally in August 2023

Bitcoin is currently showing signs of a bullish trend, according to analyst and trader Ali Martinez. Martinez, who communicates with his followers on the social media platform X, points out that whenever the Relative Strength Index (RSI) indicator has entered the “oversold territory” on the daily chart in the past two years, Bitcoin has experienced a minimum 60% increase.

The RSI, a momentum oscillator used to identify whether an asset is oversold or overbought, ranges from zero to 100. Levels between 70 and 100 suggest overbought conditions, while levels between zero and 30 indicate oversold conditions. Martinez emphasizes that in August 2023, Bitcoin’s daily RSI signaled oversold conditions before initiating a remarkable surge of nearly 200%, soaring from approximately $25,000 to its record high above $73,000.

With Bitcoin currently priced below $62,000 and the RSI once again in oversold territory, Martinez suggests that this could be an opportune moment to consider buying the dip. Bitcoin is trading at $61,827 at the time of writing.

Martinez also highlights Bitcoin’s Market Value to Realized Value (MVRV) metric, indicating that the primary cryptocurrency could potentially appreciate as it has dropped to a negative value. The MVRV compares Bitcoin’s current market cap to its realized capitalization, calculated based on the purchase price of Bitcoin. When the MVRV value falls below zero, it signifies oversold conditions.

“Since February 2023, the Bitcoin MVRV Ratio has dipped below -8.40% on four occasions, leading to BTC price surges of 63%, 100%, 92%, and 28%,” Martinez notes. Currently, with Bitcoin priced under $60,000 and the MVRV Ratio at -8.96%, this could present an ideal opportunity to capitalize on the dip.

It is essential to note that opinions expressed in this analysis are not investment advice. Investors are encouraged to conduct thorough research before engaging in high-risk investments in Bitcoin, cryptocurrencies, or digital assets. All financial decisions and transactions are undertaken at the individual’s own risk. The Daily Hodl does not advocate for the buying or selling of any cryptocurrencies or digital assets, nor does it function as an investment advisor.