The conditions under which the bitcoin cryptocurrency can grow by 60% have been named

The flagship cryptocurrencyis showing signs of a potential rebound after a sharp sell-off that shook the entire cryptocurrency market last week. Analysts emphasize that a combination of technical indicators and historical patterns are reasons to remain optimistic about the future performance of the digital asset.

In particular, a crypto expert known as El crypto prof noted in his post on the X platform that the recent sell-off in bitcoin has caused the Relative Strength Index (RSI) to fall to its lowest level in 20 months. In his opinion, this indicates «potential over-selling of the Cryptocurrency.»

The analyst noted that the price of bitcoin has reached an important support line that has been acting as resistance throughout 2023. «Of particular note is the historical correlation between the fall of the BTC RSI below 30 and subsequent price movements,» El crypto prof said.

According to the expert, every time the RSI fell below this threshold, the price of bitcoin increased — from 28% to an impressive 60%.

«On the daily chart, BTC is showing the lowest RSI in the last 20 months and at the same time is reaching a support line that has been a resistance for almost a year. Every time the RSI has been <30, the $BTC price has risen between 28% and 60% since then. I believe we have no reason to be bearish,» he wrote.

After the recent correction in the value of bitcoin, during which the asset returned to the $ 25,000 mark, investors and traders began to calm down a bit, as the indicators mean that current market conditions may be favorable for a significant increase in the price of the cryptocurrency.

In general, analysts advise investors to keep an eye on the BTC support zone at $ 25,000. Meanwhile, El crypto prof emphasizes that bitcoin is likely to «survive the upcoming rally, driven by the potential approval of a spot exchange-traded fund (ETF) and the approaching halving.»

It is worth noting that the crypto market is still recovering from a number of recent incidents, including the news that SpaceX has sold its bitcoin assets. The impulsive actions of Elon Musk’s company, in particular, led to the collapse of the BTC and the liquidation of positions.