Bitcoin (BTC) holds $30K and hints at bottoming out – here’s why

image from medium.com
image from medium.com

YEREVAN (CoinChapter.com) – Bitcoin (BTC) registered a 4% intraday value gain after a week of sideways consolidation. As a result, the flagship cryptocurrency traded at just over $30,200 in Thursday’s New York session and exhibited signs of a possible upside move. Here are several technical indicators backing the bullish claim.

#1 Bitcoin price in logarithmic growth curves

In detail, logarithmic analysis is a statistical approach that uses historical data to forecast and predict future prices. For example, in the case of Bitcoin charts, the Logarithmic growth curve takes all the historical BTC price data and develops curves that project a potential path of future price growth.

As Bitcoin moves throughout the market cycles, the BTC value tends to bounce between the upper and lower bounds of the logarithmic growth curve. Thus, the expectations of the price action further staying within the bounds are relatively high.

Also read: More troubles ahead for Bitcoin (BTC) & cryptos as cash holdings go up.

Moreover, the current $30,200 position puts the digital asset’s price at the bottom bound, hinting at a possible uptrend. Educational hub Yellow Block mentioned the growth curves’ significance in a recent tweet, noting that Bitcoin is not confined to the growth channel and could fall below it.

#2 BTC’s Mayer Multiple at 0.6

The Mayer Multiple (MM) is a long-term indicator of oversold or overbought conditions. It measures the current price of Bitcoin against the 200-day moving average. Notably, traders utilize the indicator to determine the best entry points into the market and the potential exit points. In other words, the MM is a gauge of when to buy and when to sell.

Generally, when the MM indicator reaches above the 2.4 line, the price action will likely top off, and traders should consider taking profit. Conversely, when MM drops below 1, Bitcoin could bottom out, and it’s time for investors to buy the dip.

Bitcoin (BTC) price action featuring a bottoming Mayer Multiple indicator. Source: TradingView.com
Bitcoin (BTC) price action features a bottoming Mayer Multiple indicator. Source: TradingView.com

Also read: Bitcoin retail interest dips massively as BTC price drops below $30K-support again.

As the chart above indicates, the oscillator stood at 0.6 on May 19. The previous price surges occurred at the same MM level (marked with orange circles).

#3 Bitcoin’s RSI says the bottom is close

The relative strength index (RSI) on the BTC/USD monthly chart stood close to the historic rebound level. In detail, the RSI is a momentum indicator. Similarly to Mayer Multiple, it measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of an asset.

Thus, should the RSI fall any lower, it could source support from the ascending trendline indicated on the chart below.

Bitcoin (BTC) monthly chart. Source: TraidngView.com
Bitcoin (BTC) monthly chart. Source: TraidngView.com

Also read: Bitcoin sell-off puts MicroStrategy (MSTR) in danger of bankruptcy. Here’s why.

A crypto analyst with the Twitter handle Rekt Capital spotted the dipping RSI and called the position a possible “point of reversal.”

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Bitcoin, Bitcoin (BTC) holds $30K and hints at bottoming out – here’s why

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