Key Points
- Bitcoin [BTC] has recovered from a 4% drop that occurred on 5th June.
- The 1000-day RSI could be an effective tool for traders and investors in predicting the Bitcoin bull run.
Bitcoin’s recent recovery from a 4% drop signals that the bull run is not yet over.
The drop, which happened on 5th June, was a result of an online spat between U.S. President Donald Trump and Elon Musk, the former head of D.O.G.E. (Department of Government Efficiency).
Impact on Bitcoin and Crypto Space
This disagreement led to a fall in Tesla’s shares by 11.7% on the same day. The crypto space, including Bitcoin, also saw a 5% drop but was quick to rebound over the weekend.
The rapid fall and recovery of Bitcoin sparked concerns among some participants about the potential end of the bull run.
Bitcoin Bull Run Predictions
Analytics platform Alphractal noted that the 1000-day RSI had broken out from the descending trendline, similar to previous bull run cycles.
The platform stated that a breakdown below the RSI 1000 could present a selling opportunity, while the bull market still has potential to go further.
Bitcoin spent a significant part of the first half of 2021 near the 3.2 times multiple of the realized price. This cycle has not breached the 3.2 line yet, indicating that the bull run might still have some steam left.
An interesting parallel was drawn from 2021 where the 400-day moving average was retested as support during the bull run, sparking a rapid rally to new highs. If the current cycle mirrors the previous one, we could be near a top. However, it’s important to remember that no two cycles are identical. The 1000 RSI could be a key indicator to watch, potentially marking the end of the bull run.
