After experiencing a significant price decline of 10% in the past two days, Bitcoin (BTC) is now poised for a price reversal, as shared by a crypto expert. On September 7, 2024, a crypto expert and a trader made a post on X (previously Twitter) that the technical indicator named Chande Momentum Oscillator (CMO) is signaling a potential price reversal for Bitcoin.
Expert Hints Price Reversal for Bitcoin
After hitting an all-time high of $73,777 in March 2024, BTC has been moving in a descending channel pattern since then. The trader noted that whenever BTC reaches the lower level of the channel pattern, the technical indicator CMA touches its rebound triggering zone and BTC’s price starts to recover and rally significantly.
Since March 2024, BTC has revisited the lower level of the channel three times, and each time it has experienced a massive upside rally. However, during the recent price drop, BTC’s price once again revisited the lower level of the channel pattern, and the technical indicator also touched its rebound triggering zone, indicating a potentially significant upside rally or price reversal in the coming days.
This post on X is gaining significant attention from traders and investors in the crypto community due to its 100% success rate.
Bitcoin Technical Analysis and Key Levels
According to expert technical analysis, despite trading below the 200 Exponential Moving Average (EMA), Bitcoin currently looks bullish and poised for an upside momentum. BTC’s Relative Strength Index (RSI) has formed a bullish divergence on a daily timeframe, indicating a potential price reversal. However, traders and investors often see this as a buy signal.
Based on the historical price momentum, there is a high chance that BTC could soar to $57,500 and $65,000 in the coming days.
Current Price Momentum
At press time, BTC is trading near the $54,480 level and has experienced a modest 0.8% price surge in the last 24 hours. Meanwhile, its trading volume has dropped by 25% during the same period, indicating lower participation from traders due to the recent market sell-off.
Whereas, BTC’s open interest has remained stable for the last 24 hours. However, it has been steadily declining since September 3, 2024, indicating a decrease in traders interest.