A closely followed crypto analyst and trader is warning Bitcoin holders that BTC is about to flash a signal that could lead to the reversal of its recent uptrend.
Crypto strategist Kevin Svenson tells his 112,300 Twitter followers that he’s keeping a close watch on BTC’s relative strength indicator (RSI) on the one-day chart.
According to Svenson, the momentum-tracking metric is about to roll over, which could be a cue that Bitcoin’s bounce from its low of around $17,600 is coming to an end.
“[The] 50 level on daily RSI is a ‘must-hold’ level for the bulls. All other times that we broke below the RSI uptrend line resulted in a major breakdown. We are very close to this level… Watch the 50 level on the daily RSI very closely right now. That’s the pivot zone from bull to bear, bear to bull during trends. We have to hold it to remain bullish. Falling below it results in a flush down usually.“
At time of writing, Bitcoin is changing hands for $23,308 while the daily RSI is hovering at 55.
The crypto analyst is also following the price action of Loopring (LRC), a protocol that uses zero-knowledge (ZK) proofs to ensure users’ privacy while transacting on public blockchains. According to Svenson, LRC can surge 2x from current prices due to its partnership with video game retailer GameStop.
“LRC can easily double in my opinion. GameStop NFT (non-fungible token) partnership is huge. Still undervalued. I’m long.”
In March, Loopring announced that it launched the beta version of GameStop’s NFT platform designed to provide fast, secure and cheap access to users.
At time of writing, LRC is trading at $0.48, up nearly 6% on the day.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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Featured Image: Shutterstock/Tithi Luadthong