Crypto analytics company CryptoQuant has published a noteworthy assessment indicating that the risk of a decline in the Bitcoin market has resurfaced. According to the analysis, the firm’s Bitcoin researcher, Axel Adler Jr., stated that the market is approaching a critical threshold in terms of technical indicators.
According to data shared by Adler, the price of Bitcoin has fallen by 19.7% in the last three months, dropping to approximately $21,500. The year-to-date loss is 10.5%, reaching approximately $10,400. While the price appears to have stabilized relatively in the short term, a 1.5% weekly increase and a 0.5% monthly decrease indicate a weakening overall market momentum.
The analysis specifically highlighted the Relative Strength Index (RSI). The monthly RSI is currently at 56.5. This figure has fallen below the 12-month average (67.3) for the first time, and is only two points away from the four-year average of 58.7. Historically, an RSI falling below the four-year average is often considered a harbinger of a deeper bear market.
Axel Adler emphasized that the next one to two months will be critical, stating that Bitcoin has a chance to recover if the RSI holds in the 55-58 band. However, he warned that if the indicator permanently falls below 55, the market could enter a sharper downturn.
Experts say investors should closely monitor technical indicators, especially the RSI, in the coming period, as these data will clarify whether the market is in a correction phase or heading towards a deeper downtrend.
*This is not investment advice.
