After experiencing a significant 10% drop in price over the past two days, Bitcoin (BTC) is now primed for a price reversal, Chia to a cryptocurrency expert. On September 7, 2024, a cryptocurrency expert and trader posted on X (formerly Twitter) that the Chande Momentum Oscillator (CMO) technical indicator is signaling a potential price reversal for Bitcoin.
Expert Suggests Price Reversal For Bitcoin
After reaching a record high of $73,777 in March 2024, BTC has been moving within a descending channel pattern. Traders have noticed that every time BTC reaches the low of the channel pattern, the CMA technical indicator hits the recovery trigger zone and the BTC price starts to recover and increase sharply.
Since March 2024, BTC has returned to the channel low three times, and each time it experienced a large rally. However, during the recent decline, BTC once again reached the channel low, and the technical indicator also touched the recovery trigger zone, signaling a potential price increase or reversal in the coming days. This post on X is attracting significant attention from traders and investors in the crypto community due to its 100% success rate.
Bitcoin Technical Analysis and Important Levels
Bitcoin is currently bullish and bullish despite trading below its 200 Exponential Moving Average (EMA), according to technical analysts. BTC ’s Relative Strength Index (RSI) has formed a bullish divergence on the daily time frame, suggesting a possible price reversal. However, traders and investors often XEM this as a buy signal.
Based on historical price momentum, there is a high chance that BTC could rise to $57,500 and $65,000 in the coming days.
Current Price Momentum
Currently, BTC is trading at nearly $54,480 and has seen a slight increase of 0.8% in the past 24 hours. Meanwhile, its volume has decreased by 25% in the same period, indicating lower participation from traders due to the recent sell-off in the market. BTC's open interest has remained stable over the past 24 hours. However, since September 3, 2024, open interest has been steadily decreasing, indicating a decline in interest from traders.
