Bitcoin is consolidating in the range of $60,000 to $70,000 despite the recent selling wave. Despite the persistence of geopolitical risks in the Middle East, technical indicators show that the possibility of a short-term reaction rise in prices is increasing. In the chart shared by Markus Thielen, one of the important names of the cryptocurrency market, it is seen that the Bitcoin price moves horizontally after sharp declines, while the Relative Strength Index (RSI) diverges from the price movement and heads upwards.
Signs of improvement on the technical side
Despite the liquidation of large volume positions and decreasing buying demand in recent days, Bitcoin’s decline has remained limited. It is determined that the RSI indicator fell to the oversold region due to selling pressure and started to recover from this level. The RSI starting to rise from levels close to 15 percent technically indicates a possible direction change, even if the price continues its horizontal or downward trend. It is considered that the risk of opening a downward position in this environment increases.
It is stated that geopolitical risk is priced in
Reports emphasize that the tension in the Middle East is significantly reflected in prices, and many investors include geopolitical risks in prices. In the analysis, it is predicted that the potential effects of geopolitical developments are largely included in the prices, and in case of a faster normalization than expected, there may be an increase in reaction in assets sensitive to risk appetite such as Bitcoin. According to the report, in this environment, the upward risk return ratio in short-term positions may turn in favor of long positions.
While it is reported that there is a cautious atmosphere in the market in general, it is evaluated that a possible positive development may be met with a rapid reaction since the pace of sales has decreased and geopolitical risks have already been priced in. Markus Thielen points out that if the positive divergence in the RSI continues, short positions will carry more risk.
Markus Thielen opined, “If the recovery in the RSI continues to hold, it may reduce the pressure on the downward price momentum and create more risk for short positions at current levels.”
On the other hand, in the latest technical analysis published by Matrixport, it was emphasized that Bitcoin is balanced in a certain price band despite the recent rapid depreciation and that the risk-return profile has begun to change on the technical side.
In addition, in the evaluation made by Matrixport, it was pointed out that tokenized gold provides investors with an advantage in terms of risk management in cases where traditional futures markets are closed, as it provides 24/7 trading opportunity. The institution stated that tokenized and traditional gold trade are complementary elements.
Earlier in the day in Asian markets, the price of Bitcoin fell below the $65,000 level, leading to the liquidation of approximately $230 million in long positions. While this development increased the impact of macroeconomic uncertainties on the market, it was noted that technical indicators brought to the agenda the potential for recovery.
