In your last video analysis titled “BITCOIN’S One Indicator Signaling LAST Major Dip”, Dan Gambardello, a noted crypto analyst with 370,000 subscribers on YouTube, investigates Bitcoin’s latest price action to predict what could potentially be the final big dip. After falling to $60,000 on Wednesday, fears of another deeper price drop have gripped the Bitcoin market.
Why this could be Bitcoin’s last leg
Gambardello emphasizes the importance of the daily and six-hour charts. On the daily chart, Bitcoin is currently testing the 50-day moving average, a level that often serves as a litmus test for short-term market sentiment.
However, the analyst’s main focus is on the six-hour chart’s Relative Strength Index (RSI), a momentum oscillator used to measure the speed and change of price movements, which has reached oversold levels. According to Gambardello, the RSI reaching oversold territory is traditionally seen as a bullish signal, potentially indicating the end of the current price decline.
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“The bottom is actually, I think, close. There could be some kind of capitulation in the very short term, but I think there could be a very strong recovery after that happens,” noted Gambardello, suggesting that despite the immediate market turbulence following the Israel-Iran conflict newsfundamentals point to an eventual robust recovery.
Via X, Gambardello added: “Nothing like an oversold 6-hour RSI at the start of the bull season. It’s also great during bull season.
This statement is based on his analysis of past market behaviors during similar conditions, reinforcing the cyclical nature of Bitcoin market dynamics. Drawing parallels with historical data, Gambardello highlights Bitcoin’s behavioral trends in previous Octobers, noting a pattern of initial declines followed by strong recoveries later in the month.
“October will close green. It’s always (like that) with diving. People are just freaking out. I think that’s it, but it gives us a little time. We are getting all these red candles in October, give us another week, maybe even two, and we could get a pump, a breakout to the upside by the end of October,” says Gambardello.
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Digging further into the analysis, Gambardello discusses potential scenarios around Bitcoin’s lower trendline, a recurring support level over the past six months. He speculates that if Bitcoin approaches this trendline again, it could effectively serve as a robust support level, potentially marking the last significant downturn before a sustained upward trend.
Notably, a final touch to the trendline could bring BTC price down to as low as $50,000. However, Gambardello believes this is a less likely scenario as the 6-hour RSI has already reached oversold territory while BTC is currently recovering from the 50-day moving average.
Additionally, Gambardello refers to Bitcoin’s performance in recent halving years, which are typically followed by bull markets, as seen in 2016 and 2020. Gambardello suggests that the current year could follow a similar trajectory. “This is a Year halved. We saw what happened in the halving years in 2020 and 2016 in October. Will this happen again?
At press time, Bitcoin traded at $60,899.
Featured image created with DALL.E, chart from TradingView.com