Crypto: Bitcoin Captures $65k After Us Stocks Rebound From AI Sell-off:...

Bitcoin rallied above $66,000 following a positive close from US stock markets, putting Monday’s AI and tech-stock driven sell-off to rest. Will $60,000 remain the BTC bottom?

Bitcoin’s (BTC) bleed slowed on Tuesday as US markets recovered from Monday’s AI and software-stocks-driven selloff. At the US market closing bell, the DOW locked in a 370-point gain, while the S&P 500 held on to a 0.77% rally. The swift recovery of US equities markets appears to have played a role in lifting negative pressure off crypto investors looking to cut risk asset exposure.

Bitcoin analysts continue to stress the importance of the former $65,000 support being reclaimed and the $60,000 level holding, with many suggesting that a dip below the latter figure would swiftly usher in new lows in the low $50,000 range.

While Bitcoin now trades 49% away from its all-time high, BTC market resource Material Indicators flagged a $4.5 million spot purchase by “mega whales” on Tuesday morning. In the post, Material Indicators noted that while the figure is insignificant, “it’s significantly larger than the typical $1M - $2M market order we see from that order class.”

Currently, few signals point to a reversal of the prolonged bear trend, but analysts are quick to point out how deeply oversold Bitcoin is, citing several data points which marked a turning point in sentiment and positioning when extreme thresholds were breached.

As reported by Cointelegraph, Bitcoin’s weekly RSI has fallen to 25.71, lows not seen since July, 2022. As shown in the chart below, RSI readings below 28 have previously been a discounted buying opportunity and early signals of the market finding a bottom.

Galaxy head of firmwide research Alex Thorn said Bitcoin is “nearing all-time oversold territory,” explaining that the:

Related: Bitcoin 'fair value' gap sets $45K target as AI woes haunt stocks, gold

Bitcoin is also within 9% of its 200-week exponential moving average at $58,855, a level some traders have pointed to as the start of the bottoming process in previous market cycles. Crypto analyst Rekt Capital, on the other hand, painted a less optimistic picture.

According to the analyst, the now confirmed daily close below the 200-EMA “could turn it into resistance on any upcoming recovery.” Rekt Capital suggested that future retests of the moving average would instead “prompt additional bearish acceleration to the downside.”

Source: CoinTelegraph