Crypto Analyst Sees Potential Market Bottom for Bitcoin and Ethereum

A closely followed crypto analyst indicates that Bitcoin (BTC) and Ethereum (ETH) may have reached a local market bottom.

In a new post, crypto trader Rekt Capital informs his 542,600 followers on the social media platform X that the Relative Strength Index (RSI)—a momentum indicator for overbought or oversold conditions—is showing bullishness for Bitcoin and is near breaking a descending trendline.

> “Can the daily RSI break its downtrend dating to November 2024?”

The analyst suggests that Bitcoin might soon rally to fill a CME gap with an upper target of $87,000. A CME gap represents the price difference between Bitcoin’s closing on Friday and its opening on Monday at the Chicago Mercantile Exchange, and traders pay attention to these gaps since they typically get filled.

> “Bitcoin continues to successfully retest the CME Gap as support (orange box, $78,000-$80,700). More, BTC has been doing so at a higher low (black). If this continues BTC will soon be able to completely fill the $82,245-$87,000 CME Gap above (orange circle).”

At the time of writing, Bitcoin is trading at $84,611, up 3.8% in the last 24 hours.

Ethereum’s Potential Uptrend

Regarding Ethereum, the analyst notes that ETH may be entering a significant uptrend after falling into a price support area that has historically triggered rallies.

> “Ethereum has dropped into this historical demand area (light blue). If the price can generate a strong enough reaction here, then ETH will be able to reclaim the $2,196-$3,900 macro range (black). If ETH does this before the March monthly close, then this entire sub-$2,200 downside would end up as a downside wick.”

ETH is currently trading for $2,048, showing an 8.9% increase in the last 24 hours.

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