After a significant 10% price drop over the past two days, Bitcoin (BTC) is now on the verge of a price reversal, as a crypto expert shared. On September 7, 2024, a crypto expert and a trader posted on X (formerly Twitter) that the technical indicator Chande Momentum Oscillator (CMO) is signaling a possible price reversal for Bitcoin.
Expert Warns of Bitcoin Price Reversal
After hitting an all-time high of $73,777 in March 2024, BTC has been moving in a descending channel pattern ever since. The trader noted that when BTC reaches the lower level of the channel pattern, the technical indicator CMA touches its rebound trigger zone and the price of BTC starts to recover and rise significantly.
Since March 2024, BTC has revisited the lower level of the channel three times and each time it has experienced a massive upward rally. However, during the recent price drop, BTC price revisited the lower level of the channel pattern and the technical indicator also touched its rebound trigger zone, indicating a potentially significant upward rally or price reversal in the coming days.
This post about X is getting a lot of attention from traders and investors in the crypto community because of 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 appears bullish and poised for upward momentum. BTC’s Relative Strength Index (RSI) has formed a bullish divergence on a daily time frame, indicating a possible price reversal. However, traders and investors often take this as a buy signal.
Based on historical price momentum, there is a high probability that BTC could surge towards $57,500 and $65,000 in the coming days.
Current Price Momentum
At the time of going to press, BTC is trading around the $54,480 level and has witnessed a modest price increase of 0.8% over the past 24 hours. Meanwhile, the trading volume has dropped by 25% over the same period, indicating lower participation from traders due to the recent market sell-off.
While BTC’s open interest has remained stable over the past 24 hours, it has been steadily declining since September 3, 2024, indicating a decline in trader interest.
